ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC
GOOD PRACTICES IN INFORMATION AND COMMUNICATION TECHNOLOGY POLICIES IN ASIA AND THE PACIFIC:
PROMOTION OF ENABLING POLICIES AND REGULATORY FRAMEWORKS FOR INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT IN THE ASIA-PACIFIC REGION
UNITED NATIONS New York, 2004
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UNITED NATIONS PUBLICATION
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Sales No. E. 05.11.F.5 Copyright 0United Nations 2004 All rights reserved Manufactured in Thailand
The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Mention of firm names and commercial products does not imply the endorsement of the United Nations. This publication has been issued without formal editing.
FOREWORD Information and communication technologies (ICTs) are at the heart of recent economic and social transformations in both the industrialized and many developing countries. The costs of ICTs are continuing to fall. As their capabilities increase, they are being applied throughout all sectors of economies and societies. The increasing spread of ICTs opens up new opportunities for developing countries of the Asian and Pacific region to harness these technologies to serve their development goals. In the last few years, there have been many initiatives at the highest levels of government and industry to promote the construction of not only a global information infrastructure but, more important, a global information society. Developing countries are being encouraged to invest in their national information infrastructures so that they can participate in knowledge-based development and experience the predicted economic and social benefits. At its first phase, held at Geneva in December 2003, the World Summit on the Information Society reaffirmed that the regional exchange of experiences and best practices, the regional networking of initiatives and the creation and pursuance of a common regional vision play a decisive role in the creation of an information society. Indeed, the Declaration of Principles and Plan of Action adopted by the Summit stressed that regional integration contributes to the development of the global information society and makes cooperation within and among regions indispensable. Realizing the importance of a regional perspective in building an information society, ESCAP members and associate members have given ESCAP a clear mandate to assist them in this endeavour, especially through capacity-building in ICT policy and regulatory framework development. While the importance of ICT policies is understood at the highest political level the world over, the development of systematic, comprehensive and articulated policy and regulatory frameworks has reached an advanced stage in only a few countries in the Asian and Pacific region. The lack of coherent policy is likely to contribute to the development or prolonged existence of ineffective infrastructure, waste of resources and disparate and uncoordinated efforts by various government agencies and economic sectors to tap the full potential of ICT. Even when promulgated as distinct policy pronouncements, ICT policies, of necessity, have to take account of other policy areas, such as education policies, information policies, trade and investment policies and cultural and linguistic policies. The complex nature of ICT development issues necessitates that care be taken to design ICT development programmes and policies in which economic and social goals complement one another. Experience shows that policies are generally more successful the more they support a pro-competition market-driven environment, promote leadership by the private sector and, when required, public-private partnership, are developed within the context of an independent regulator and are formulated on a cross-sectoral basis. Cognizant of the above considerations, this study is intended to be a resource for ICT policy planners and decision makers, and offers policy-oriented perspectives on three major sets of issues:
1.
Understanding the background and process of ICT policy formulation and implementation relevant to the Asian and Pacific countries;
2.
Sharing the rich and diversified experiences of selected countries of the region in ICT policy development through best practices;
3.
Developing materials for awareness and capacity-building programmes at the national and regional levels.
In preparing for the study, fact-finding missions were fielded to India, Malaysia and the Republic of Korea, followed by a regional seminar on enabling policies and regulatory frameworks for ICT iii
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
development in the Asian and Pacific region held at Bangkok in December 2003 and an ESCAPIITU regional training workshop on enabling policies and regulatory frameworks for ICT development in the Asian and Pacific region held at Bangkok in May 2004. These activities provided the participating countries with useful insights into the holistic nature of the ICT policy development process and the institutional mechanisms required for its successful implementation. We are grateful to the participating member countries, Bangladesh, Bhutan, China, India, Kazakhstan, Malaysia, Nepal, the Philippines, the Republic of Korea, Sri Lanka, Thailand and Viet Nam, for their excellent cooperation and assistance in clarifying and delineating the objectives of the study and sharpening its focus. A special word of thanks is also due to the International Telecommunication Union for its close substantive and organizational support for this process, as well as to the Asia-Pacific Telecomrnunity and the United Nations Industrial Development Organization for their inputs at the regional seminar. The study has been prepared on the basic premises that ICT policy development is a dynamic and complex process and should play a complementary role in helping developing countries to face the many challenges of globalization. It is my hope that the ICT policy planning framework will be useful to Governments of member countries in finding answers to their numerous questions on bridging the digital divide and pursuing knowledge-based development. On a final note, I would like to express the appreciation of ESCAP for the generous support given by the Government of the Republic of Korea to the project on "Promotion of enabling policies and regulatory frameworks for information and comrnunication technology (KT) development in the Asian and Pacific region", which has made the printing of this publication possible.
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Kim Hak-Su Executive Secretary
Contents
CONTENTS Page
... Foreword ............................................................................................................ 111 Abbreviations ....................................................................................................... ix Part One PROMOTION OF ENABLING POLICIES AND REGULATORY FRAMEWORK FOR INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT IN THE ASIA-PACIFIC REGION
. I1. I
INTRODUCTION .......................................................................................... AREAS FOR ACTION .................................................................................... A . Infrastructure development ........................................................................... B . Securing affordable. universal access to ICTs .................................................... C . Preserving linguistic and cultural diversity and promoting local content ..................... D . Developing human resources ......................................................................... E . Establishing legal. regulatory and policy frameworks ........................................... F . Ensuring balance between intellectual property rights and public interest ................... G . Ensuring the security of ICTs ........................................................................ H . Fostering partnerships and mobilizing resources .................................................
I11. PROJECT INTRODUCTION: PROMOTION OF ENABLING POLICIES AND REGULATORY FRAMEWORK FOR INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT IN THE ASIA-PACIFIC REGION ................................................................................
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IV CRITICAL ASPECTS OF ICT POLICY AND REGULATORY FRAMEWORK DESIGN ................................................................................ A . National ICT policies .................................................................................. B . ICT infrastructure ...................................................................................... C . Access for all ........................................................................................... D . Human resources development ......................................................................
V
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11 11 12 12 12 E . E-legal environment .................................................................................... 13 F . E-business .......................................................................................... 13 G . Enhancing ICT innovation ............................................................................. 14 ............................................................................... H . Multilateral cooperation 14 ................................................................................... I . Government projects 14 J . Priority programmes .................................................................................. 14 ............................................................................................... K . ICT trends 15 L . Conclusions .............................................................................................. 15
CONCLUSION .............................................................................................
15
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
CONTENTS (Continued) Page Part Two BEST PRACTICES FROM THE EXPERIENCES OF MORE DEVELOPED COUNTRIES (INDIA. MALAYSIA AND REPUBLIC OF KOREA) I
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INDIA ........................................................................................................ A . National ICT plan ...................................................................................... B . ICT infrastructure ...................................................................................... C . Access for all ........................................................................................... D . Human resources development ...................................................................... E . E-legal environment .................................................................................. F . E-business or e-commerce - case study for Best Practices .................................... G . E-government ........................................................................................... H . Enhancing ICT innovation ............................................................................. I . Other programmes ..................................................................................... J . Lessons learned so far ................................................................................
19 19 23 27 28 30 32 34 38 40
43
I1 . MALAYSIA ............................. . .................................................................. A . National ICT plan ...................................................................................... B. Infrastructure ........................................................................................... C . Access for all ........................................................................................... D . Human resources development ...................................................................... E . E-legal environment .................................................................................... F . E-business or e-commerce ........................................................................... G . Multimedia Super Corridor (MSC) ................................................................. H . Enhancing ICT innovation ............................................................................. 1. Other programmes ..................................................................................... J . Lessons learned so far ................................................................................ K . Best practices .........................................................................................
46 46 50 52 53 54 56 57 61 62 62 63
REPUBLIC OF KOREA ................................................................................. A . National ICT plan ...................................................................................... B. ICT infrastructure - best practices ................................................................. C . Human resources development ...................................................................... D . E-legal environment .................................................................................... E . E-business or e-commerce ........................................................................... F . E-government: best practices ........................................................................ G . Enhancing ICT innovation: best practices ..........................................................
64 65 70 72 73 77 79 88
Contents
CONTENTS (Continued) Page Part Three
ICT POLICY TRAINING MODULE MODULE l : INTRODUCTION AND OVERVIEW OF THE CRITICAL ASPECTS OF ICT POLICY AND REGULATORY FRAMEWORK DESIGN ...................................................................... 93 MODULE 2: OVERVIEW OF ICT FOR ECONOMIC AND SOCIAL DEVELOPMENT ............................................................................... 102 MODULE 3: NEW CHALLENGES ......................................................................... 115 MODULE 4: POLICY FORMULATION ....................... ........................................ 129 MODULE 5: NATIONAL ICT POLICY .................................................................... 154 MODULE 6: E-GOVERNMENT ..............................................................................
159
MODULE 7: ICT INFRASTRUCTURE AND ACCESS: FOCUS ON POLICIES AND REGULATIONS ........................................................... 186 A . Background of the ICT sector ........................................................... 186 B.
Status of ICT infrastructure and access in Asia and the Pacific ................. 187
C.
Liberal policy leading to sector reforms and regulatory frameworks ........... 191
D . Different roles between policy maker and regulator ................................ 191 E.
Competitive ICT sector with multi-players ........................................... 192
F.
Policies for ICT applications ...........................................................
G.
Indigenous policies for the development of ICT infrastructure and access .................................................................................. 197
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MODULE 8: HUMAN RESOURCES DEVELOPMENT ................................................ 276 MODULES 9 AND 10: E-BUSINESS AND E-FINANCE ................................................ 286 MODULE 11: PRIORITY PROGRAMMES ................................................................. 312 MODULE 12: ICT TRENDS ....................................................................................313
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Abbreviations
ABBREVIAITONS 3G ABT ADC ADR ADSL AMPS APDMS APSWAN ASPS ATM B2B B2C B2G BA BB0 BCOs BITMB BOOT BSNL C2C CAN CARD CERT CMA CME CST
cvc
DAGS DB DBFO DIT DSL DTA EDI EG EGSC ELX e-mail EP ER & DC1 E-Services ETRI E-Village FDI FIRST F0 G2B G2C
Third Generation Agreement on Basic Telecommunications Access Deficit Charges Alternative Dispute Resolution Asymmetric Digital Subscriber line Advanced Mobile Phone System Andhra Pradesh Development Monitoring System Andhra Pradesh State Wide Area Network Application Service Providers Asynchronous Transfer Mode business-to-business business-to-customers/consumer business-to-government Broadcasting Authority Build-Buy Operate Business Community Organizations Bank Industri dan Teknologi Malaysia Berhad Build Own Operate Transfer Bharat Sanchar Nigam Limited consumer-to-consumer Customer Access Network Computer-Aided Administration of Registration Department Computer Emergency Response Team Communications and Multimedia Act Continuing Medical Education central sales tax Central Vigilance Commission Demonstrator Applications Grant Scheme design-build design-build-finance-operate Department of Information Technology Digital Subscriber Line Domestic Tariff Area Electronic Data Interchange electronic government E-Government Steering Committee Electronic Labor Exchange electronic mail electronic procurement Electronics Research and Development Center of India electronic services Electronics and Telecommunications Research Institute Entertainment Village foreign direct investment Forum of Incident Response and Security Teams finance only government-to-business government-to-citizens
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
G2G GATT GATS GBDe Gbps GMPC GOE GSM HRDF HRMIS IBG ICT IIIT IP IPO IPRs ISPs ITDB ITU IXP KLSE LHP LRIC MAMPU MBO MCIT MCMC MCPHIE MDC MECM MEPS MESDAQ MEWC MGS MIC/MICT/MOIC MMU MO1 MPLS MPT MSC MSC VC MST NASSCOM NGOs NIC NICE NICNET NISG NITA NITC
government-to-government General Agreement on Tariffs and Trade General Agreement on Trade in Services Global Business Dialogue gigabits per second government multi purpose card Generic Office Environment Global System for Mobile Communications Human Resources Development Fund Human Resources Management Information System Inter Bank Giro Information and Communication Technology Indian Institute of Information Technology Internet Protocol pre-initial public offer intellectual property rights Internet service providers Information Technology Development Board International Telecommunication Union Internet Exchange Point Kuala Lumpur Stock Exchange Lifetime Health Plan Long Run Incremental Cost Management Planning Unit Management by Objectives Ministry of Communication and Information Technology Malaysian Communications and Multimedia Commission Mass Customized/Personalized Health Information and Education Multimedia Development Corporation Ministry of Energy, Communications and Multimedia Malaysian Electronic Payment Systems Malaysian Exchange of Securities Dealing and Automated Quotation Ministry of Energy, Water and Communications, Malaysia Development Grant Scheme Ministry of Information & CommunicationlTechnology Multimedia University Ministry of Information Multi Protocol Label Switch Ministry of Post & Telecommunication Multimedia Super Corridor MSC Venture Corporation Ministry of Science & Technology National Association of Software and Services Companies non-governmental organizations National Informatics Center National Internet Center of Excellence National Informatics Center Network National Institute for SMART Governance National IT Agenda National IT Council
Abbreviations
NPCS NPM NTC NTP O&M OL PC0 PCT PIN PKI PMPC PMS P01 PPSS PSFs PTICs QoS RD&D RTC S.M.A.R.T. SATRC SDPs SET SMEs SSL STIC STP TDF TDSAT TEMPEST TRAI TRIPS UDNDRP Unimas USA USF
us0
VoIP VPTs W3C WAP WBG WDM WIPO WLL WSIS WTO
Nationwide Payment and Clearing System new public management National Telecommunications Regulators' Council New Telecom Policy Operation & Maintenance Contract Operation Licence Public Call Office Patent Cooperation Treaty Postal Index Number Public Key Infrastructure Payment Multi Purpose Card Project Monitoring System point of interconnection Personnel Policy Support System private sector fora Public TeleInfo Centers quality of service research, design and development Rights Tenancy and Crops Smart, Moral, Accountable, Responsive, and Transparent South Asian Telecommunications Regulators' Council service delivery points secured electronic transaction small and medium sized enterprises Secure Sockets Layer Strategic Thmsts Implementation Committee Software Technology Park Technopreneur Development Flagship Telecom Disputes Settlement and Appellate Tribunal Transient Electro Magnetic Pulse Emanations Standard Telecommunications Regulatory Authority of India trade related intellectual property rights Uniform Domain Name Dispute Resolution Policy Universiti Malaysia Sarawak Universal Service Access Universal Service Fund Universal Service Obligation Voice over Internet Protocol Village Public Telephones World Wide Web Consortium Wireless Application Protocol World Bank Group Wavelength Division Multiplexing World Intellectual Property Organization Wireless Local Loop World Summit on the Information Society World Trade Organization
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PART ONE PROMOTION OF ENABLING POLICIES AND REGULATORY FRAMEWORK FOR INFORMATION AND COMMUNICATION TECHNOLOGY
DEVELOPMENT IN THE ASIA-PACIFIC REGION
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Good Practices in Information and Communication Technology Policies in Asia and the Pacific
During the Asia-Pacific Regional Conference, held in Tokyo, Japan 13-15 January 2003, in preparation for the first phase of the World Summit on the Information Society (WSIS), the Tokyo Declaration, the Asia-Pacific Perspective to the WSIS, was developed. This conference articulated the shared vision and common strategies of the Asia-Pacific for the "Information Society". The objective of the conference was to discuss how best to work together to contribute to the region's effective transition to an Information Society that will accelerate and enhance regional economic, social, cultural and technological development. This is in sync with the objective of the first phase of WSIS, which is to provide a global platform where key players from various stakeholders came together to develop a common vision and understanding of the information society and adopted a declaration and a plan of action. The Asia-Pacific Regional Conference emphasized that a primary aim of the Information Society must be to facilitate full utilization of information and communication technology (ICT) at all levels in society and hence enable the sharing of social and economic benefits by all, by means of ubiquitous access to information networks, while preserving diversity and cultural heritage. Along with other United Nations agencies' initiatives, projects and meetings, the Tokyo conference endorsed the important role that ICTs can play in achieving the United Nations' Millennium Development Goals, which describe a fundamental set of principles and guidelines for combating poverty, hunger, disease, illiteracy, environmental degradation and gender inequality. In building an Information Society for the Asia-Pacific region, we should take into account its unique features?
1. Geographic and demographic diversity: The region comprises the earth's largest land mass and vast ocean as well as many small islands. The region has over 65 per cent of the world's population, including over 75 per cent of the world's poor. Many countries of the region have very low population densities spread over large percentages of their areas. Many rural populations are also inaccessible, and have limited contact with other communities. The Asia-Pacific region presents the greatest contrast between large continent-sized nations, city states, islands, tiny atolls and Pacific island nations separated by vast stretches of ocean; between some of the world's richest and the poorest nations; between some free, state-controlled and mixed economies. 2. Very dynamic: The Asia-Pacific region is also the most dynamic and fastest growing region of the world. It is expected to account for more than half of the world trade in the twenty-first century. Asia-Pacific led the world in economic growth during the decade of the 1990s. Asia-Pacific developing nations outperformed other developing regions every single year. Despite the region's 1997 financial crisis, developing Asian nations as a whole still registered positive economic growth. And the region bounced back quickly from the c r i s k 6 3. Cultural and linguistic diversity: This region enjoys a richness of ancient and modern cultures, including diverse languages, social traditions and customs. Of the more than 6,800 languages in the world, 3,500 (51 per cent) are spoken in the Asia-Pacific region, including languages without written scripts. In contrast, over 68 per cent of the web sites use the English language. The region is home of orient cultures which have been centres of learning and have created huge intellectual property in several languages.
World Summit on the Information Society (WSIS), Asia-Pacific Regional Conference: The Tokyo Declaration - the Asia-Pacific Perspective to the WSIS, Tokyo, Japan, 13-15 January 2003.
Part One: Promotion of Enabling Policies and Regulatory Framework for Information and Communication Technology Development in the Asia-Pacific Region
4. Institutional stability: Generally speaking, the region is institutionally stable. Such stability will enable the region to attract more investors, including innovators, entrepreneurs, operators, manufacturers and vendors in the field of ICTs.
Productive workforce: The region's economic growth depends on a large, productive workforce capable of fully utilizing ICTs. Given the strong integration of the region into the global economy, this would maintain and enhance the competitive position of its enterprises, leading to the growth of decent employment. 5.
6. Gender issues: Unequal power relations and other social and cultural aspects have contributed to differential access, participation and status for men and women in the region. In this regard, more attention should be given to overcoming these constraints and ensuring that women can equally benefit from the increased use of ICTs for empowerment and full participation in shaping political, economic and social development. 7 . Disability issues: There are an estimated 400 million persons with disabilities in the AsiaPacific region. The majority are poor and have been excluded from the benefits of ICT development due to the lack of appropriate or affordable technology for persons with disabilities. More effort, including implementation of disability-concerned regional plans of action and programmes, should be made to ensure equitable access to ICTs for persons with disabilities. 8. Youth issues: Youth forms the majority of the population in the Asia-Pacific region and is a force for socio-economic development. Equipping young people with knowledge and skills on ICTs to prepare them for full participation in the Information Society is an important goal. The younger generation in this region has fuelled the growth of the internet and mobile communications.
9. Digital divide disparities: In the region as a whole, there is a noticeable disparity in access to, and use of, the latest ICTs, including Internet access and broadband availability, between and within countries. It is recognized that the barriers to equitable access result from differences in education and literacy levels, gender, age, income and connectivity. In this context, particular attention should be given to least developed countries, economies in transition and post-conflict countries.
The challenges to ESCAP, and other international and regional developmental bodies, are how to narrow the digital divide substantially and create opportunities by providing equitable, affordable, and universal access to ICT to all people in the region. Most notable in this region is that the political leadership of most Asia-Pacific countries and economies are committed to bridge the digital divide. 10. Imbalance of information flows: While there is substantial internal international trade within the Asia-Pacific, North American and European regions, the same cannot be said for the flow of information between these regions. There is potential for growth in information flows between the Asia-Pacific region and the rest of the world, as well as between countries within the region. 11. Pioneering role in selected ICT areas: Within the region, some countries have been pioneering, inter alia, broadband, satellite and mobile telecommunication services, among others, which are having a significant impact on the way people communicate and on the delivery of government and business services. The experience gained by those countries in this field can be shared with others to promote good practice at local, national, regional and global levels. 12. Special circumstances of regional small island developing States: These countries, vulnerable to environmental hazards, and characterized by small, homogenous markets, high costs of access and equipment, human resource constraints exacerbated by the problem of "brain-drain", limited access to networks and remote locations, will require particular attention and tailored solutions to meet their needs.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
The most pressing common issues in many of the developing countries that hinder ICT development are:7 Underdeveloped IT industry Inadequate access Inadequate ICT infrastructure Social factors: low literacy, predominantly poor and rural population untouched by and fearful of machines Lack of general awareness about Internet and computers Language barrier, most content is in English, not the local languages Absence or inadequate locally relevant content Lack of appropriate bandwidth, particularly in rural areas Lack of availability or poor reliability of power supply where available Low level of computer education Lack of locally available trained manpower for operation and maintenance support Lack of investment in ICT infrastructure, and general resource crunch for providing access to Schools, setting up of IT Parks, etc.
II. AREAS FOR ACTION% In order to promote the development and advancement of the Information Society, it is necessary to address many issues, within and across sectors, while ensuring that the essential platform of ICT infrastructure and services, standards and innovation is established. The following are the priority areas for action for the Asia-Pacific region:
A. Infrastructure development The development of the Information Society must be based on platforms of internationally interoperable technical. standards, accessible for all, and technological innovation of ICTs, as well as systems to promote the exchange of knowledge at global, regional and subregional levels through any media. In this regard, in addition to enhancing people's awareness of the advantages of using ICTs, reliable, advanced and appropriate, ICT technologies and services infrastructure are required. As a sharp increase in the volume of international and regional Internet traffic is anticipated, it is important to strengthen regional and international broadband network infrastructure by using new technologies to enhance network efficiency and provide the capacity to match the needs of the countries in the region.
Regional Road Map Towards an Information Society in Asia and the Pacific, United Nations Economic and Social Commission for Asia and the Pacific, New York, 2003. World Summit on the Information Society (WSIS), Asia-Pacific Regional Conference: The Tokyo Declaration Asia-Pacific Perspective to the WSIS, Tokyo, Japan, 13-15 January 2003.
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the
Part One: Promotion of Enabling Policies and Regulatory Framework for Information and Communication Technology Development in the Asia-Pacific Region
Working towards open and flexible international and interoperable standards is an important issue for all countries so as to ensure that all can utilize the technology and associated content and services to their maximum potential. Development and deployment of open-source software should be encouraged, as appropriate, as should open standards for ICT networking.
B. Securing affordable, universal access to ICTs In order to achieve affordable and universal access it is important to enable existing and new technologies to provide connectivity to all, in particular through institutions accessible to the public such as schools, libraries, post offices and multipurpose community centres. Special attention should be paid to how ICTs can benefit the disadvantaged, through innovative initiatives. High-quality access, attainable through broadband, has great potential to help better deliver essential services required to meet basic human needs through applications such as e-education and e-health, as well as e-business and other ICT applications. Also, new technologies, such as wireless and satellite networks can assist remote areas, including small island nations, to gain access to information and knowledge.
C. Preserving linguistic and cultural diversity and promoting local content Linguistic and cultural diversity enriches the development of society by giving expression to a range of different values and ideas. It can facilitate the spread and use of information by presenting it in the language and cultural context most familiar to the user, thereby further encouraging the use of ICTs. Promoting broadband networks in the Asia-Pacific region could not only support research, business and personal activities, but also help to preserve cultural diversity and indigenous knowledge and traditions. In this context, an effort should be made to support multilingual domain names, local content development, digital archives, diverse forms of digital media, content translation and adaptation. The development of standard and recognized character sets and language codes should also be supported.
D. Developing human resources In order for people to make the most of the Information Society, they must have enhanced levels of ICT literacy and ICT skills. To achieve this, relevant education and training should be promoted at every level, from primary to adult, to open up opportunities for as many people as possible, and especially for the disadvantaged. The capacity of developing and least developed countries to apply ICTs effectively must be enhanced through regional and international cooperation. ICTs can contribute to enhancing the quality of teaching and learning, and the sharing of knowledge and information. Teachers act as a gateway to the Information Society, and their skills development and curriculum resources need increased support. It is also important to improve both basic and advanced education in science and technology. This will help to create a critical mass of highly qualified and skilled ICT professionals and experts that will continue to serve as a foundation for the region's ICT development. It is recognized that education in network infrastructure development and operation is of particular importance, and is critical to the availability of efficient, reliable, competitive and secure ICT network services.
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
E. Establishing legal, regulatory and policy frameworks The transition to the Information Society requires the creation of appropriate and transparent legal, regulatory and policy frameworks at the global, regional and national levels. These frameworks should give due regard to the rights and obligations of all stakeholders in such areas as freedom of expression, privacy, security, management of Internet addresses and domain names, and consumer protection, while also maintaining economic incentives and ensuring trust and confidence for business activities. In order to secure prompt settlement of disputes, alternative dispute resolution (ADR) should be considered along with normal judicial proceedings.
F. Ensuring balance between intellectual property rights and public interest While intellectual property rights play a vital role in fostering innovation in software, e-commerce and associated trade and investment, there is a need to promote initiatives to ensure fair balance between IPRs and the interests of the users of information, while also taking into consideration the global consensus achieved on IPR issues in multilateral organizations. Copyright holders and distributors of content should be cognizant of the need to ensure that content is accessible for all, including persons with disabilities. In this connection, access requirements should be included in legal, regulatory and policy frameworks, where appropriate.
G. Ensuring the security of ICTs Among the challenges to the region, are the general lack of awareness of information security issues, the rapidly evolving complexity, capacity and reach of information technology, the anonymity offered by these technologies, and the transnational nature of communication frameworks. Recognizing the principle of fair, equitable and appropriate access to ICTs for all countries, special attention should be paid to the fact that ICTs can potentially be used for purposes that are inconsistent with the objectives of maintaining international stability and security, and may adversely affect the integrity of the infrastructure within States, to the detriment of their security in both civil and military fields. A multi-pronged approach is needed to address these challenges, and cybercrime, on all fronts, with emphasis on preventive approaches, national guidelines and regional and international cooperation. At the same time, action to address cybercrime and to ensure a safe and secure Information Society must respect the sovereignty of nations and maintain respect for the constitutional and other rights of all persons, including freedom of expression. All stakeholders concerned with ICT issues should take the necessary steps to enhance security, user confidence and other aspects of information and system/network integrity in order to avoid the risk of wholesale disruption and destruction of the network systems on which they are increasingly dependent. Effective information security could be guaranteed not only by technology, but also by education and training, policy and law, and international cooperation. In the long-term, development of a "global culture of cybersecurity", based on a common understanding of regulations and appropriate mechanisms for information and technology exchange and international cooperation, should be promoted.
H. Fostering partnerships and mobilizing resources The private sector plays an important role in the development and diffusion of ICTs, while civil society, including NGOs, works closely with communities in strengthening ICT-related initiatives. Increased cooperation and partnerships are needed between governmental and intergovernmental
Part One: Promotion of Enabling Policies and Regulatory Framework for Information and Communication Technology Development in the Asia-Pacific Region
organizations, the private sector and civil society, for effective design and implementation of various initiatives, by giving priority to locally-available human resources. All stakeholders are urged to mobilize resources for the development of the Information Society, including through increasing investment in telecommunications infrastructure, human capacity building, policy frameworks and the development of culturally sensitive local content and applications. International and regional organizations, including financial and development institutions, have an important role to play in integrating the use of ICTs in the development process and making available the necessary resources for this purpose.
III. PROJECT INTRODUCTION: PROMOTION OF ENABLING
POLICIES AND REGULATORY FRAMEWORK FOR INFORMATION AND COIVMUNICATION TECHNOLOGY DEVELOPMENT IN THE ASIA-PACIFIC REGION Realizing the importance of the regional perspective in building an Information Society, ESCAP was given a clear mandate to assist its members through capacity building in ICT policy and regulatory framework development. It is very evident from the preceding discussions that there is a need to create a transparent, competitive and trustworthy environment in order to maximize the economic and social benefits of information and communications technology. But while the importance of ICT is understood at the highest political level the world over, the development of systematic, comprehensive and articulated national policy and regulatory frameworks had reached an advanced stage in only a number of countries in the Asia-Pacific r e g i ~ n . ~ While there has been a rapid growth of ICTs over the last several years, some developing countries of the region have not enjoyed the economic and social boost that these technologies can confer to the economy and wider society. A government's enactment of meaningful policies, legal and regulatory frameworks, as well as supporting economic and fiscal measures, are very important facilitators for accelerating the demand for ICTs and their development and diffusion. The objectives and content of ICT policies have similarities and differences in international, regional, national, local and organizational contexts. While the effectiveness of an ICT policy and regulatory framework in one country does not guarantee that the same recipe would work in another, many developing countries face similar constraints that need to be taken into account when such policies are formulated. ESCAP encourages and facilitates the compilation, documentation, sharing and discussion of the experiences of its member countries, and to have this information widely available to the intended target groups. Thus, the primary aim of the project, which had been generously funded by the Government of the Republic of Korea is to assist government policy makers to acquire the necessary knowledge to develop systematic, comprehensive and articulated ICT policy and regulatory frameworks through training and information sharing activities to enable broad-based ICT development in their respective countries. This was to be achieved as a result of having- information through policy research and case studies widely available to the intended target groups, as well as having those target groups trained to improve their knowledge and awareness of policies, strategies and options for ICT access, development and diffusion in the economy and wider society.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
The project activities and their objectives are as follows: Survey Questionnaire -
To assess the state of member countries with regards to ICT policies and regulatory frameworks
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To determine countries that can serve as case studies
Study Visits -
To review and access the applicability of enabling policies and regulatory frameworks for ICT in three countries in the region, where the importance of these policies is understood at the highest political level, and which have gone ahead to adopt their own policies
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The compilation of results and experience will be documented, shared and discussed with participating countries at the consultative expert group meeting
Consultative Expert Group Meeting -
To convene experts from various member countries to understand the policy dimensions and critical elements that either facilitated or hindered the adoption and diffusion of ICT in the Asia-Pacific region
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To share and discuss the observations of the three-country study visits
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To provide inputs and suggestions for the regional training workshop on ICT policy development
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To provide a clearer position on future capacity-building activities and other assistance that ESCAP could provide to interested member countries.
Regional Training Workshop on ICT Policy Development -
To promote awareness among government policy makers of the need to develop systematic, comprehensive and articulated ICT policies and regulatory frameworks.
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To provide an overview of the different K T policy components.
The expected benefits of the project are: To promote awareness among government policy makers of the need for action to develop systematic, comprehensive and articulated ICT policy and regulatory frameworks To focus attention on where technical assistance is needed most To identify regional best practices on ICT policy development To encourage participating countries to improve the climate and institutional mechanisms for the enactment of ICT policy and regulatory frameworks To highlight priority areas that apply across nations
Part One: Promotion of Enabling Policies and Regulatory Framework for Information and Communication Technology Development in the Asia-Pacific Region
IV. CRITICAL ASPECTS OF ICT POLICY AND REGULATORY FRAMEWORK DESIGN Successful ICT policies need to take into account all relevant aspects of ICT policy and regulatory framework design. These are the overall National ICT policies, ICT Infrastructure, Universal Access, Human Resources Development, and the actual ICT policy environment related to e-commerce, enhancing the ICT industry, ICT innovation and e-government. Priority programmes on e-government, e-security , e-learning, e-health, local content generation and community centres or kiosks were also identified in the Tokyo Declaration. Certain technology trends such as mobile internet, internet telephony (Voice of IP) and open source software could also be considered in ICT policy formulation. Throughout the duration of the project, from the survey questionnaire up to the training workshop, the following outline and guide questions for each country will be used:
A. National ICT policies History of ICT Policy Formulation in your country What needs were you trying to address? What are your main policy components? Do you have policies specifically to help in developing ICT Industries? Do you have an interoperability framework for e-government and e-business information systems? Do you have policies tackling convergence issues? Who is the primary government ICT body? What is its organizational structure? How does it coordinate with other government agencies? How do you ensure coordination between different government agencies? Do you have an identified Government CIO? What are hislher roles and responsibilities? Who does the government C10 report to? Does private sector play a role in policy formulation? How active are they in policy development? Decision-making process for ICT policies, consultati e, who are involved? What is your e-government strategy? What is your strategic ICT planning methodology? Who monitors the implementation of your ICT plan? What are your means for evaluating national ICT po icies? What indicators or metrics do you use to track your ICT development? What policies have worked smoothly? Which policies are more challenging in terms of implementation, monitoring and regulation? Are there any shortcomings in your current ICT policy? Actions to correctlimprove on them?
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
B. ICT infrastructure Is your telecommunications industry deregulated? Fully privatized? How many telecommunications operators and ISPs do you have? What is your strategy for ICT infrastructure development? Status of National and Regional Internet Exchange Points Regulatory initiatives to enhance network competition, both locally and from foreign suppliers and vendors Strategies to reducing costs of connectivity to the whole population Wireless Communications and Spectrum Licensing Issues Financing Issues Do you have a policy identifying critical information infrastructure and if yes, how do you protect these infrastructure?
C. Access for all How successful have governments and telecommunication service providers been in ensuring universal access to ICT and the Internet in the region? What are effective strategies to address the urban-rural and gender digital divides? Access in schools? Access in other public institutions? Access in rural communities? Do you have a Universal access programme? If yes, could you please give more details? Do you have any models for sustainability and success of rural communications? What is the role of the government and the private sector in the above initiatives, if any? Which implementation model works best: through local government, schools, local cooperatives, private telecommunication operators, or through ISPs?
D. Human resources development What is your strategy for ICT human resource development? Do you have programmes on: Training through the Public Education System Training in Higher Education Vocational and Specialized training Training to Government Employees Training for SMEs and Micro-enterprises Training in Rural Areas Training by the Private Sector to Employees and Clients
Part One: Promotion of Enabling Policies and Regulatory Framework for Information and Communication Technology Development in the Asia-Pacific Region
E. E-legal environment What has been your experience in terms of adapting your legal environments to the demands posed by the digital economy? To what extent have they succeeded in meeting the demands by businesses, consumers and your citizenry? Do your ICT policies cover the following: What was your ICT policy based on? UNCITRAL? Others? Did you try to synergize these policies and make efforts to make these policies consistent with global and regional ICT policy initiatives? UNCITRAL Model Law on E-commerce Convergence between telecommunications, ISPs , broadcasting, media Spectrum Licensing E-transactions (PKI, trust mark systems) E-business contracts E-signatures Freedom of Expression Privacy Security Consumer Protection and the Public Good Cybercrimes Dispute Resolution Management of Internet Addresses and Domain Names Transparency Issues Monitoring, Regulatory and Enforcement
F. E-business How do you encourage ICT businesses to flourish? Do you have policies and efforts on: Incentives for Businesses, Encouraging Private Sector Investment Promoting Fair Competition Enhancing Entrepreneurship Trade Policies Taxation Building Trust and Confidence
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Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
I. INDIA A spate of reforms - post-1991 economic crisis - have given impetus to the Indian economy, particularly to the ICT sector. As part of the reform agenda, the Indian Government has taken major steps to promote ICT including the creation in 1988 of a World Market Policy, with a focus on software development for export; telecommunications policy reform; privatization of the national long-distance and mobile phone markets; and development of a more comprehensive approach to ICT. Although India's success is commanding increasing attention and investment, it has yet to result in the distribution of social and economic benefits across a broader base of the population. Challenges - including the perception of an unfavourable regulatory climate, an overloaded judicial system, poor infrastructure and costly access, and limited use of ICT - remain. The emerging shift in government strategy, toward knowledge-intensive services, has created a climate more conducive to addressing enterprise, domestic infrastructure, education and the use of ICT to meet development needs.l0
A. National ICT plan 1998 was a significant year for the IT industry development in India. Intent on accelerating IT growth, Prime Minister A.B. Vajpayee set up a National Technology and Software Development Task Force led by several high-profile individuals and many eminent representatives from government, industry and academia. The mission of the task force was to formulate a National Policy on Informatics to enable India to emerge as an IT superpower within ten years. A related goal was to recommend action steps the government needed to take to remove bottlenecks and give sharp boost to the development of the industry.
1. Framework of the national ICT plan" The plan focused on three basic objectives: Info-Structure Drive: This was to accelerate the creation of world-class IT infrastructure including fiber optics, satellite communications, and wireless networks in order to seamlessly interconnect local, national and global informatics infrastructures. Target ITEX-50: The second focus are was to increase IT exports, aiming to tap the potential US$ 2 trillion global IT market. India needs to put in place the policy environment to reach a target of US$ 50 billion in annual exports of IT software and services by the year 2008. "IT for all by 2008": The third objective was to make IT literacy nationwide. This would be achieved through spearheading the use of computers and IT in education, culminating in what was called the "Operation Knowledge" national campaign. The third objective aims to accelerate the rate of PCIset-top-box penetration in the country from the 1998 level of one per 500 to one per 50 people along with a universal access to Internet/Extranets/Intranets by the year 2008, with a flood of IT applications encompassing every walk of economic and social life of the country. The existing over 600,000 Public TelephonedPublic Call Offices (PCOs) will be transformed into public tele-info-centres offering a variety of multimedia Information services. Towards the goal of IT for all by 2008, policies are provided for setting the base for a rapid spread of IT awareness 'O Final report of the Digital Opportunity Initiative (DOI), Creating a Development Dynamic. The Digital Opportunity Initiative (DOI), a public private partnership of Accenture, the Markle Foundation and the United Nations Development Programme (UNDP). l ' lames S.L. Yong and Sameer Sachdeva, "India: e-progress in the States", Chapter 6 of E-government in Asia, I. Yong, ed., Times Editions, Singapore, 2003.
Good Practices in Information and Communication Technolom Policies in Asia and the Pacific
among the citizens, propagation of IT literacy, networked Government, IT-led economic development, rural penetration of IT applications, training citizens in the use of day-to-day IT services like tele-banking , tele-medicine , tele-education, teledocuments transfer, tele-library , tele-info-centres , electronic commerce, Public Call Centres, among others; and training, qualitatively and quantitatively, world class IT professionals. l 2 The specific initiatives are as follows: IT Penetration and IT Awareness 1.1. One-stop, non-stop network services such as ATMs, kiosks, and telephones 1.2. Wired Village pilot project 1.3. Internet access via cable TV networks. Citizen IT Interface 2.1. Having government information available to the public
2.2. District information system, such as information from the courts and parliament being accessible online 2.3. Public administration reform for better, effective, responsive and timely citizen services. Data Security and Cyber Laws 3.1. Establishment of an Information Security Agency 3.2. Framework national policies on information security, privacy, and data protection 3.3. Knowledge sharing on cryptography and cyber security from the defense agencies. IT Education 4.1. Financial schemes to help student and teacher purchase PCs 4.2. Computers and Internet in every school and educational institute by 2003 4.3. Increase the number of students taking IT courses
4.4. Teach the Teacher programme to upgrade their IT knowledge and skills. 2. Structure: policy formulation and monitoring of ICT initiatives13
Department of Information Technology In 1999, the Ministry of Information Technology was established in India to facilitate all initiatives in the IT sector. The Ministry was then merged with the Communications Ministry to form the Ministry of Communication and Information Technology (MCIT). Currently the Department of Information Technology (DIT), under the MCIT, works as the nodal agency for Information Technology. The Department of Telecommunications and Department of Posts are the two other key departments under the MCIT.
l2
India's Information Technology Action Plan Part I, 2000.
l 3 James S.L. Yong and Sameer Sachdeva, "India: e-progress in the States", Chapter 6 of E-government in Asia, J. Yong, ed., Times Editions, Singapore, 2003.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
The following are some key offices related to the DIT, which are responsible for e-governance:
The National Informatics Center (NIC) NIC provides the major backbone networks in the country. It renders computer support to all department in the central and state governments, and more than 500 district administrations. It has a satellite-based computer communications network for providing services such as e-mail, Internet, file transfer, access to databases, electronic data interchange (EDI), and video conferencing facilities. NIC has also computerized the functions of various legislative courts including the Supreme, high and lower courts, to streamline functions and enhance transparency. NIC is the central agency for the implementation of e-government in India.
Electronics Research and Development Center of India (ER & DCI) The ER & DC1 was established to undertake application-oriented, region-specific research, design and development in the state of the art electronics technology including rural communications to generate, deliver know-how, and commercialize the R&D for the manufacturing sector in the country.
National Institute for SMART Governance (NISG) NISG is a non-profit entity being promoted by the DIT, Department of Agrarian Reform, Government of Andhra Pradesh and the National Association of Software and Services Companies (NASSCOM). The company provides technology consultancy to various central, state and local government agencies for the implementation of e-governance. (b) Government CZOs
The overall C10 for e-government in India is the director-general of NIC. As for CIOs within government agencies, a high powered committee constituted under the chairmanship of the Cabinet Secretary took a decision in February 2000 to direct all ministries and departments of the central government to designate a senior officer as IT Manager to act as the focal point for promotion of IT.
(c) Role of the Private Sector Public-private partnerships, catalyzed by the IT Ministry, have played a key role in India's ICTrelated development. One of the positive results of this effort has been the IT Act of 2000, which was based on the recommendation of the National IT Task Force, and aims to set the overall strategy for the IT sector. In addition, the government and the private sector are starting to come together to foster ICT development. For example, a joint effort by the Computer Science Automation Department at the Indian Institute of Science and a Bangalore-based private company have developed Simputer - a cheap micro-computer that enables illiterate users to browse the Internet.14
(d) Planned ~nitiatives:'~ Current technological developments are fast blurring the boundaries between computers, communications and broadcasting. Cable networks can by up gradation of their networks offer telephone services and telephone companies can compete in delivery of broadcasting and video services. In future, there will no longer be distinct data and voice markets, just one for combined data/voice/video. The convergence of the Internet with the telephone and television will also bring in new dimensions in the IT l4 Final report of the Digital Opportunity Initiative (DOI), Creating a Developmerzt Dynamic. The Digital Opportunity Initiative (DOI), a public private partnership of Accenture, the Markle Foundation and the United Nations Development Programme (UNDP).
l5
India's Information Technology Action Plan Part 111, 2000.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
industry. In keeping with these trends organizational structures shall be put in place so as to facilitate the much-needed coherence into the planning and implementation of Information Technology related initiatives at the national level.
(e) Adviser to Prime Minister A key adviser on IT will be appointed in the Office of the Prime Minister in order to give proper emphasis and focus to this area. A separate division with an Information Technology Adviser will be set up in the Planning Commission to provide proper focus on Information Technology related planning.
0
High level Committee
It is important that the process of defining and implementing a vision for the country is adequately structured with key 'enablers' in place. This structure will be insulated to the extent possible form changes at the political level and will also have the credibility and authority to see the process of planning and implementation to its logical conclusion. At the apex level a High level Committee on Information Technology will be set up both at the Centre and in the States. The Committee should be chaired by the Prime Minister at the Centre and will draw upon the best expertise available internationally. Knowledge has no respect for national boundaries and we must attempt to think and act global, while formulating and concentrating our strategies for the future. Such expertise will be drawn from top level IT practitioners, academics and administrators. Inputs will, inter alia, also be considered, from industry sectors including from Small and Medium sized Enterprises, the exporting community, the media and mass communication agencies and Non-Governmental Organizations.
(g) Task Forces and Committees Task Forces will be formed under the High Level Committee, which will focus on different areas of specialization or clusters e.g., Education, Leisure and Tourism, Health care etc. Task Groups will also be formed to address issues like Standards, legal and regulatory matters, funding and management of change. State Information Technology Committees will be set up in each of the States chaired by the respective Chief Ministers. The composition of the State level committees will be left to the individual states for defining a suitable structure and composition.
(h) Chief Information or Chief Knowledge Officers Each MinistryIDepartment will have a Chief Informatics/Knowledge Officer for giving the process of informatization. The Chief Informatics Officer will have the visibility and responsibilities to advise on the design, development and implementation of Information systems. A Council of Chief Information officers will provide an interagency forum for one design, modernization, use and implementation of IT applications. The forum will also contribute significantly towards defining standards and practices among government agencies. )
Interstate IT Forum
It is important to devise an institutional mechanism for states to coordinate and collaborate on online projects. An interstate IT forum at the national level is necessary for promoting collaboration across states for delivery of electronic services to the public. The Forum will facilitate transfer of expertise and technology between state governments and will coordinate pilot projects. The forum will also be set up a web site for disseminating information among the state governments. To begin with, a meeting of Chief Ministers will be held at the national level and a coordination mechanism will be evolved for rationalization of policies impinging on the Information Technology sector. The vaporization of national information Technology flagship applications will be discussed in the forum. States will be encouraged to set up Department of information Technology and Technology organizations. The states
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
will also be asked to prepare their Information Technology plans and accord high priority to the development of information systems and Citizen-IT interfaces. The Interstate IT Forums will serve as a clearing house for strategic ideas on use of Information Technology for better government. 3. Indicators
India's key indicators are of the National Information Infrastructure: Teledensity Cellular phones Internet Access National Connectivity.
B. ICT infrastructure Teledensity in India has reached 3.5 per cent of the population. Approximately 1 per cent of households have fixed line connections, compared to 10 per cent in China. The mobile sector has approximately 3 million users, growing at 100 per cent per annum, and is expected to outstrip the fixed line market in the near future. The number of Internet accounts is around 1.5 million, growing at 50 per cent per annum. India also has very high penetration rates of terrestrial TV, cable and radio. Voice and data wireless solutions, for both domestic and export markets, are increasingly produced and used locally. l6 Access to telephones in Indian villages has improved in the last five to six years through the introduction of the Public Call Office (PCO) run by local shopkeepers. More than 60 per cent of the villages in India have at least one phone. This also includes over 800,000 Village Public Telephones (VPTs). Worldtel is undertaking a pilot in four states to secure financing to upgrade the Village Public Telephones so they will soon be Internet accessible.17 In some urban locations, India's Software Technology Parks (STPs) provide infrastructure, buildings, electricity, telecommunications facilities and high-speed satellite links to facilitate export processing of software. l 8 India also has a number of progressive computerized networks in place, including a stock exchange, the Indian Railways Passenger Reservation System, and the National Informatics Center Network (NICNET), which connects government agencies at the central, state and district levels.19 The establishment of the Telecommunications Regulatory Authority of India (TRAI) was a key step towards effective implementation of telecommunications reforms. In 1992, the mobile phone market was opened up to private operators, in 1994 the fixed services market followed, and finally in 1999, national long-distance operations were opened to private competition. Prior to these reforms, the Department of Telecommunications had been the sole provider of telecommunications services.20 l 6 Final report of the Digital Opportunity Initiative (DOI), Creating a Development Dynamic. The Digital Opportunity Initiative (DOI), a public private partnership of Accenture, the Market Foundation and the United Nations Development Programme (UNDP). l7
Ibid.
l8
Ibid.
l9
Ibid.
20
Ibid.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Some key initiatives related to telecommunications policies and infrastructure development are as follows:21
1. New Telecom Policy (NTP) '99 The NTP '99 focused on the provision of telecommunication services to rural areas. The policy set a target to achieve a teledensity of 7 by 2005 and 15 by 2010. It also envisaged transformation of the telecommunications sector into one of greater competitiveness, by providing equal opportunities for all the players.
2. Corporatization Effective 1 October 2000, the service providing functions of the Department of Telecommunications had been divested to a newly created corporate entity - Bharat Sanchar Nigam Limited (BSNL) - in order to provide functional autonomy and decision-making powers to the incumbent operator in the emerging competitive environment. 3. Strengthening the regulator
The Telecommunications Regulatory Authority of India (TRAI) Act was amended to restructure and strengthen the regulator by giving additional functions and making it mandatory to seek its recommendations in several fields. A separate high-powered body, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) was also set up for expeditious disposal of telecom disputes.
4. Private sector participation The telecommunications sector, including telephone, cellular phone and Internet services has been opened for private industry participation and competition. The Department of Telecommunications has opened up national long-distance as well as international long-distance services for private participation. 100 per cent foreign direct investment (FDI) is now permitted in the manufacturing of telecommunications equipment, Internet services (excluding provision of international gateways), and certain infrastructure providing e-mail and voicemail services. Up to 74 per cent FDI is permitted for the provision of international gateways, and radio paging services. Up to 49 per cent FDI is permitted for national long-distance service, basic telephone service, cellular mobile service and other value added services. 5. Other initiatives outlined in the IT Action Plan include:22
The monopoly of the VSNL on International Gateway for INTERNET shall be withdrawn and authorized public/government organizations will be allowed to provide INTERNET Gateway access directly without going through VSNL Gateways. Private ISPs are allowed to provide such Gateways after obtaining Defense clearance. Suitable monitoring mechanisms will be put in place to take care of security considerations. The Railways, Defense, State Electricity Boards, National Power Grid Corporation as well as organizations like ONGC, GAIL and SAIL who have rights of way shall be allowed to host fiber optic backbone. These organizations shall be allowed to provide service to the public based on this 21 James S.L. Yong and Sameer Sachdeva, "India: e-progress in the States", Chapter 6 of E-government in Asia, J. Yong, ed., Times Editions, Singapore, 2003. 22
India's Information Technology Action Plan Part I, 2000.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
backbone by having an interface with the existing or new public networks, but without necessarily having to go through DOT network. Networks such as NICNET, STPs, as well as private networks shall be allowed interconnectivity without necessarily having to go through the DOT'S INET network. Providing access to INTERNET through authorized Cable TV shall be permitted to any service provider without additional licensing. The 'last mile' linkages shall be freely permitted either by fiber optic or radio communication for IT application enterprises, IT promotional organizations and ISPs. In case of radio linkages, coordination by the Wireless Adviser will be observed to avoid frequency interference. The radio frequency band in the range of 2.4-2.483 GHz shall be open as 'public wireless' for any Government organization or PSU or Private Sector Company to set up Spread Spectrum based non-interference type Wireless data/multimedia communication equipment subject to a maximum of 4 Watt EIRP. Public TeleInfo Centers (PTIC) having multimedia capability specially ISDN Services, Remote Database Access, Government and Community Information systems, Market Information, Desk Top Videoconferencing, TeleInfo and INTERNET/Web Access Services shall be permitted and encouraged by the Government. DOT and other Basic Service Providers, Value Added Service Providers and authorized IT promotional organizations shall be permitted to promote these services on non-exclusive basis. No license fee will be charged for operating these services and the usual tariff, where applicable, will be payable by the PTIC Service providers/franchisees . Efforts will be made by DOT and other Service Providers to upgrade STD/ISD PCOs to convert them into these powerful PTICs for which ISDN or other digital facilities .shall be provided on priority without necessarily having to make additional investment on this account. DOT shall take suitable action to delicense Multimedia services, including FAX,provided by PCOs. To enhance the pace of PC and INTERNET penetration in remote and far flung areas in the country, the Defense Services shall enable provisions of connectivity for civilian applications to their communication backbone. Existing Software Centres by themselves may not be able to fulfil1 the high targets now set for the IT industry by the year 2008. International experience has shown that hi-tech industries flourish essentially in the rural hinterland adjacent to cities with modern telecom and communication infrastructure and top class hi-tech educational/research institutions. India will promote such 'Hi-tech Habitats' in the rural hinterland adjacent to suitable cities. For this purpose suitable autonomous structures will be designed and progressive regulations will be framed to facilitate infrastructurally self-contained self financed Hi-Tech Habitats of high-quality. Initially, five such Hi-Tech Habitats shall be planned and implemented in the rural hinterland of the cities: Bangalore, Hyderabad, Pune, Delhi and Bhubaneswar. It is estimated that progressively 50 such Hi-Tech Habitats can be viably set up by empowering the State Governments to autonomously nucleate them within a technologically progressive and administratively liberal set of guidelines to be prepared by a special Working Group on Hi-Tech IT Habitats to be set up by the Task Force.
The perceived road-blocks are as follows:23 Cable networks, Internet providers, Phone and Cellular companies are not allowed to connect to each other which is essential for convergence to occur. 23 Report of the Working Group on Convergence and e-governance for the Tenth Five-Year Plan (2002-2007). Government of India Planning Commission, November 2001.
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
Broadband networks, high-speed systems for transmitting video, cable, telephone calls, music or any form of communication that can be digitized - do not exist. The respective laws governing telecommunication and broadcasting were, until 1997, the Indian Telegraph ACT, 1885 and the Wireless Telegraph Act 1933, which gave exclusive privilege to the State to establish telegraph and broadcasting services. Many of the existing legal provisions contained in the Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933, Telegraph Wire Unlawful Possession Act, 1950, the Cable Television Networks (Regulation) Act, 1995, the Telecom Regulatory Authority of India Act, 1997, have become outdated and there is a strong case for giving a fresh face to the regulatory mechanism. The National Task Force on Information Technology and Software Development (1998) recommended telecom networks be allowed to connect to each other, as network interconnectivity is the key to the digital revolution. Although broadcasting's special role cannot be ignored in a democratic society, government should not create boundaries between industries when digital technology is bringing about convergence. Since it is difficult to predict the effect of digital innovation on broadcasting, the policy should be to allow the market be the prime arbiter of the development of digital innovation.
Project Sankhya vahini2# A National Technology Mission, 'Project Sankhya Vahini' will be commissioned for establishing a very high bandwidth All India National data network and enrich it with educational, health care and other knowledge oriented multimedia applications for supporting the technological and economic growth of the nation. This network will be primarily a data network forming the National Backbone, and will initially connect at least 10 metropolitan centres and over 100 universities, institutions of higher learning and research centres. As the speed of the network will be more than 1,000-10,000 times the speed currently available in the country, it will not only be able to meet the research, teaching and learning requirements of educational institutions, but also the high bandwidth data communication needs of other organizations in the commercial, manufacturing and financial sectors. This is especially opportune as India is fast emerging as a major global player in computer software. To continue growth in this area of Information Technology, the country needs to equip itself with the latest communications strategies and make available to the nation the high data rates and quality of service guarantees. More than meeting the immediate and fast growing requirements of the country, Sankhya Vahini will also provide the testbed for developing and proving multi-giga bit technologies that will soon become the norm throughout the world in the next decade. The National Backbone will reach major urban centres and towns and be available to schools, universities and also to commercial establishments such as financial institutions, industrial houses and software companies. It would then become possible to access educational, training and digital libraries providing content that are available from universities around the world and also from outstanding educational and research institutions in India. An easy, guaranteed and affordable access to the network can accelerate the development of applications for distance learning, job-oriented training, upgrading and re-orientation of skills, health care, training of educators, and numerous other novel applications.
24
India's Information Technology Action Plan Part 111, 2000.
26
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
C. Access for all IT penetration & IT awareness2j Government shall encourage the setting up of value-added network services including ATMs, Electronic Kiosks, Telephones, Smart Cards, etc., for providing a 'One-Stop Non-Stop' service to the public. A major promotional campaign shall be launched to boost IT in Indian languages. This campaign will be based on a multi-pronged approach, involving fiscal and other incentives for R&D, production, marketing and popularization of IT products in Indian languages. This recommendation addresses the reality that India can become a major IT power only if IT penetration in the country deepens and widens-which in turn, is dependent on large-scale use of IT in Indian languages. The Government shall take all the necessary steps to boost IT for agricultural and integrated rural development. Towards this end, a number of demonstration projects will be devised in each State taking into account the specific strengths and needs at the local level. A unique 'WIRED VILLAGES' pilot project has been launched under the aegis of the National Information Technology Task Force on Information Technology at the Warananagar Cooperative Complex in Kolhapur District in Maharashtra. Efforts will be made to quickly replicate such projects in other states. The Government shall take necessary measures to develop, productivise and use, in domestic and global markets, indigenous technologies in wireless telecommunication such as CorDECT, remote access switch, etc., to achieve the national objective of rapid, low-cost expansion of telephone and Internet connectivity in rural and remote areas. Similarly, promotional measures shall be taken to encourage technologies that bring IT and Internet to the masses through the vast network of Cable TV houses. The Armed Forces shall integrate far-flung and remote areas (Ladakh, North-East, Andaman & Nicobar Islands, Kutch, Lakshadweep and Minicoy Islands, border areas of Himachal and Rajasthan) with mainstream India, through IT penetration as part of their Civic Action Programme. The funds for this initiative shall be provided through the Government/Venture/Seed Capital.
Observations and recommendation^^^ Ministry of Information Technology has formulated a programme for IT for Masses for implementation during loth Plan based on the recommendations made by a Working Group constituted for the purpose. MCACs, besides above objectives, would also need to address to the requirements of: (i)
Adult literacy,
(ii) Rural empowerment and creating awareness on social, education etc., (iii) Vocational training and employment generation for rural people, (iv) Health Care advice for remote specialist and (v), (v) IT enabled education.
25
India's Information Technology Action Plan Part I, 2000.
26 Report of the Working Group on Convergence and e-government for the Tenth Five-Year Plan (2002-2007). Government of India P l a ~ i n gCommission, November 2001.
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
Service Delivery Points (SDPs) should to be set up at convenient locations for citizens to access services. Information Kiosks may be set up in public places such as shopping centres, post offices, railway stations, libraries etc. All the STDIISD booths should be converted into IT booths through whatever necessary steps required to do the same. They will operate as Public Tele Info Centers (PTICs). For service delivery to citizens in rural areas, the logistics and infrastructural difficulties in the way of use of computers in the rural areas, e.g., non-availability of trained manpower for maintenance, need for involvement of NGOs etc., should be given attention. For rural areas, the following services could be delivered: Information and advice on agricultural problems, crop diseases, availability of seeds, marketing support, price of commodities etc. Weather forecasting at the district level for short-term and medium-term Education and training opportunities Employment Exchange Registration Public Grievances Registration and Tracking in written form.
D. Human resources development In spite of relatively low literacy rates among the general population, India has several key advantages in human capital: a large English-speaking population and world-class education, research and management institutions - a direct result of investment in self reliance in science and technology. In addition to establishing Indian Institutes of Technology in various cities around India to create a large pool of technical skills, the government has a computer policy to encourage R&D in personal computers. The IT training sector continues to grow at a rapid rate: total training revenues in 1998 were estimated at US$ 225 million, 30 per cent up on the previous year. However, one of the biggest challenges to the Indian software industry remains the difficulty in attracting and retaining talented professional^.^^
1. Operation Knowledge Recognizing Information Technology to be a frontier area of knowledge, and also a critical enabling tool for assimilating, processing and productivising all other spheres of knowledge, the Government shall launch 'OPERATION KNOWLEDGE'. The aim of this national campaign will be to universalize computer literacy and also to spread the use of computers and IT in education. The following initiatives shall be taken for the immediate implementation of some of its key objectives: The Government shall soon launch three schemes - Vidyarthi Computer Scheme, Shikshak Computer Scheme and School Computer Scheme - to enable every student, teacher or school respectively desirous of buying computers to do so under attractive financial packages. These schemes will be supported by a suite of initiatives such as lowering the cost of PCs, easy-installment bank loans, computer donations by IT companies and other business houses, bulk donations of computers by NRI organizations, large-volume bargain price imports, multi-lateral funding, etc.
27 Final report of the Digital Opportunity Initiative (DOI), Creating a Development Dynamic. The Digital Opportunity Initiative (DOI), a public partnership of Accenture, the Markle Foundation and the United Nations Development Programme (UNDP).
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
Computers and Internet shall be made available in every school, polytechnic, college, university and public hospital in the country by the year 2003. All universities, engineering colleges, medical colleges and other institutions of higher learning in the country as well as Research and Development Organizations shall be networked for a supplementary programme of distance education for improving the quality of education before year 2000. The seven national level institutions (IITs, IISc.) shall be encouraged to triple their output of students in IT by suitably restructuring the programme. A National Council of IT Education comprising experts from both the industry and the academe, shall be set up for defining courses and their content in the light of rapid developments taking place in Information Technology. The Council will also initiate a 'Teach the Teachers' (3T) programme' for upgrading on a regular basis the IT knowledge and skills of teachers. An IT Course Module shall be made a compulsory component of all Degree Courses within a short period implemented with urgency to make up for the lost time. Hi-tech institutions like the Indian Institute of Information Technology (IIIT) will be given the Deemed University status without insisting upon the mandatory three-year stipulation. The Government shall promote the pairing of our Universities with centres of excellence in IT in developed countries. Specific courses shall be launched in association with the Software Industry and IIMs to provide Project Management skills and develop specialized courses on Software Marketing. The concept of SMART Schools where the emphasis is not only on Information Technology in Schools, but also on the use of skills and values that will be iriportant in the next millennium, shall be started on a pilot demonstrative basis in each State. An Institute for Computer Professionals of India shall be set up on the pattern of the Institute of Chartered Accountants of India; the Institute will be nucleated by NASSCOM with initial financial support from the industry and the Government. The Institute will be given the responsibility as an Accreditation Body for IT Education and Training Programmes with full Government recognition in addition to the DOEACC Programme of the Department of Electronics. To enhance the knowledge base of IT related education at all levels the Government shall establish Information Technology, System Engineering and IT Security Institutes from within existing manpower of the Armed Forces. The Centres of Excellence in IT Software and System Engineering in the Defense Services will be utilized to the national advantage. Virtual Institutes in different parts of the country shall be set up to achieve excellence in distance education. The talent and expertise of IT-trained ex-servicemen shall be utilized for IT penetration in rural India and Government will fully support this offer of the Armed Forces. A Plan will be prepared and implemented for utilizing the services of the large number of IT literate defense personnel retiring every year for propagating the IT culture at sub-district levels. A 'National Qualification Framework' shall be established for computerized online objective system of knowledge acquisition; An 'Educational Credit Bank' shall be implemented for giving flexibility to integrate credits earned in different institutions/systems towards the eligibility for diplomas and degrees. A specialized sub-committee of this Task Force shall coordinate the setting up of National and State level Digital Libraries Projects.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
A pilot project under the aegis of the National Task Force on Information Technology shall be launched in some lead districts which have already attained universal literacy, with the aim of achieving universal computer literacy in all the secondary schools in these districts. Alongside, the network of educational institutions in these districts will be assisted to maximize the induction of IT in order to create world class talent at the top-end of the education pyramid. These pilot projects will be joint initiatives of the local educational institutions, respective State Governments and the Centre. In the first instance, such a pilot project will be launched in Dakshin Kannada and Udupi Districts in Karnataka on a substantive self-financing basis. Within a short time, the same will be extended to suitable districts in other States. In view of the lower-than-national-average levels of technical and IT education facilities in Uttar Pradesh, Bihar, Madhya Pradesh and Rajasthan, several educational centres will be identified with a view to making them models for IT-based education and training at all levels. The aim of this initiative will be to promote IT education and awareness in Hindi-speaking States and thereby revitalize the Hindi heartland in all the fields of knowledge and knowledge-based enterprises. Allahabad shall be developed as the first such model IT-based education-cum-business centre. Within a short time, this initiative will be extended to other States which are underdeveloped in IT. To encourage the worldwide trend of employment of women in the IT Sector, the following promotional measures will be takex2* Telecommuting will be allowed to professionally qualified women in IT to facilitate their continued association with their work place in case they are not in a position to attend to the job in office on a regular basis due to family constraints. Such women will be offered special loanslfinancial grants by the companies to set up infrastructure at their homes to be able to telecommute. Virtual institutes will evolve special HRD programmes to help educated women to enter the field of IT-enabled services. Banks and FIs will offer special financial packages on a pro-active basis to support enterprising and professionally qualified women to set up home based IT services in various areas of IT-led economic activities.
E. E-legal environment India's focus on self-reliant industrialization in the 1970s and 1980s has been replaced with reforms aimed at positioning India in the world economy: the foreign direct investment process has been streamlined, new sectors have been opened up to foreign direct investment and ownership, and the government has exempted the ICT industry from corporate income tax for five years. These reforms have helped India to become increasingly integrated into the global economy through growth in the export of software and skill-intensive software services, such as call-centres. In 1986, the Indian government announced a new software policy designed to serve as a catalyst for the software industry. This was followed in 1988 with the World Market Policy and the establishment of the Software Technology Parks of India (STP) scheme. As a result, the Indian software industry grew from a mere US$ 150 million in 1991-1992 to a staggering US$ 5.7 billion (including over US$ 4 billion worth of software exports) in 1999-2000 - representing an annual growth rate of over 50 per cent.29 The establishment of the Telecommunications Regulatory Authority of India (TRAI) was a key step towards effective implementation of telecommunications reforms. In 1992, the mobile phone market was 28
India's Information Technology Action Plan Part 111, 2000.
29
Ibid.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
opened up to private operators, in 1994 the fixed services market followed, and finally in 1999, national long-distance operations were opened to private competition. Prior to these reforms, the Department of Telecommunications had been the sole provider of telecommunications services.30 In addition, to attract foreign direct investment, the government permitted foreign equity of up to 100 per cent and duty free import on all inputs. Government-created technology parks also offered professional labour services to clients, a cost-effective programme for India since ICT labour is so inexpensive by giobal standards .31
P. Intellectual property protection India's well-established framework for protecting intellectual property rights has been an important inducement to business investment: well-known international trademarks have been protected by Indian laws, even when they were not registered in India. In 1999, major legislation was passed to protect intellectual property rights in harmony with international practices and in compliance with India's obligations under TRIPS. TRIPS refers to trade related intellectual property rights. The agreement prescribes worldwide minimum standards for patent protection and first came into being in 1 9 9 4 . ~ ~ 2. Cyberlaws
The following are key legal and policy frameworks for IT development in ~ n d i a . ~ ~
(a) Information Technology Act 2000 This Act, endorsed in October 2000, is the fundamental law for e-governance. It serves to provide legal recognition for transactions carried out by means of electronic data interchange (EDI) and other means of electronic communication, which involves the use of alternatives to paper-based methods of information communications and storage. The Act also provides for other related issues to e-governance such as penalties, offenses and adjudication.
(b) Communications Convergence Bill In 2001, the Government of India released a draft Communication Convergence Bill that aims to provide a clear regulatory framework for the convergence of telecom, Internet and broadcasting services. Passage of the draft made India the second country in the world (after Malaysia) to adopt legislation covering the convergence of hi-tech media. The objective of the bill is to create a regulatory environment, which is flexible enough to accommodate and propagate any permutation or combination of technologies and services. In order to achieve a technology-neutral and service sector-neutral environment, the bill outlines the creation of four categories of licenses that include network infrastructure facilities, network services, application services and content application services (similar to Malaysia's).
(c) Agenda for e-governance Policy Drafted by the Department of Information Technology (DIT), this Agenda charts a road map for e-governance policies and projects. It ensures that the basic infrastructure is planned for, including technology standards, funding mechanisms, and human resource development strategies. 30
Ibid.
31
Ibid.
32
Ibid.
33 James S.L. Yong and Sameer Sachdeva, "India: e-progress in the States", Chapter 6 of E-government in Asia, J. Yong, ed., Times Editions, Singapore, 2003.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
(d) Freedom of Information Bill 2002
The Parliament of India took another step towards transparency in governance by passing the historic Freedom of Information Bill 2002. The Bill aims to provide access to government information and files to every citizen in an effort to promote openness, transparency and accountability in administration.
F. E-business or e-commerce - case study for Best Practices India is known worldwide for its IT human resources, and software products and services. The establishment of software parks like the world-famous Banglore IT Park has propelled the software industry. Several initiatives done and being planned by India are worth looking into as a source of best practices for other countries in the Asia-Pacific region. The Software Technology Park (STP) scheme is a 100 per cent Export Oriented Scheme (100 per cent EoU) for the development and export of computer software using data communication links or in the form of physical media including export of professional services. STP can be a virtual software development unit or can be infrastructural complex set-up for providing necessary support for the STP units. 34 Some highlights of the STP Approvals are given under single window clearance scheme. An STP project may be set up anywhere in India. Director STP is empowered to approve projects with an investment of Rs. 100 million (US$ 2.5 million). 100 per cent Foreign equity is permitted and are approved under the Automatic Route delegated powers to The Director STPI. All the imports of Hardware and Software in the STP units are completely duty free. Import of second hand capital goods are also permitted. Simplified Minimum Export Performance norms i.e., US$ 0.25 million or 3 times CIF Value of imported goods whichever is higher and positive Net Foreign Exchange Earnings against Export Earnings. Use of computer system for commercial training purposes is permissible subject to the condition that no computer terminals are installed outside the STP premises. The sales in the Domestic Tariff Area (DTA) shall be permissible upto 50 per cent of the export in value terms. STP units are exempted from payment of corporate income tax upto 2010. The capital goods purchased from the Domestic Tariff Area (DTA) are entitled for the benefits like levy of Excise Duty and Reimbursement of Central Sales Tax (CST). Capital invested by Foreign Entrepreneurs Know - How Fees, Royalty, Dividend etc., can freely be repatriated after payment of Income Taxes due on them if any. Domestic projects will not attract any local levies. Repartition of foreign currency for payments can be freely done. 34
http://www.stpi.org
35
Ibid.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
Much of the initial domestic demand stimulus for ICT and ICT services industries in India has come from government: 28 per cent of total IT spending to date can be attributed to government and publicsector expenditure. Major areas of government expenditure include: financial services, taxation, customs, telecommunications, education, defense and public infrastructure. As a result of the growth in ICT use in India, the ICT industry itself has also increased its domestic economic activity, for example, a number of ICT companies have developed accounting and word processing packages in Indian languages. The potential impact of this growth on the domestic economy is much broader than developing software for export only.36 1. Planned ~nitiatives:~'
To enable tapping the vast global market in products and packages, which is the next step of the value chain, the following policies will apply to leverage software developmentlmanagement skills in the international market, to encourage trend-setting Indian companies and to pave the way for the new entrant's confidence in the Product Software business. A definite time lead will be given for the Indian product software, where global standard products are existinglemerging which will be for a period of 24 months, termed as Indian software products promotion period.
Encouraging the infrastructure industries like Petroleum, Power, Steel, Banking, Insurance, Hospitals and Mining to work with the various Indian product software companies and to create global reference sites. Banks will extend working capital limits for Product Software companies and will be in multiples of net owned finds similar to the provisions applicable to NBFC and other such service companies at present. It is very important to build brands internationally. The Government will provide soft loans1 subsidies for Brand Building of product software developed in India through the India Brand Equity Fund of the Ministry of Commerce. The provisions of Section 35 (2AB) of Income Tax Act will be applicable to Product Development also. With India making an entry in 1999 into the listings in major overseas Stock Exchanges, a stage is set for attracting requisite Foreign Direct Investments. Taking note of the advantages of such overseas listing, the Government of India will maximally simplify the procedures to enable any registered Software Company to get itself listed in overseas Stock Exchanges like NASDAQ, NYSE, etc. After the listing, the companies can avail without restriction, post-listing services like Internetbased Information services, daily summary of activity in the Stock Market, quality, analytics, foreign market data, etc., as well as make it easier to participate in analyst meetings, regional conferences, satellite broadcasts, Internet hot links, Board meetings, etc. In the country's drive to create Indian multinationals around the world, listing in overseas stock exchanges will be an essential facility. A major industry reorientation programme will be initiated through C11 and NASSCOM with promotional Government finding to attain world leadership position in the following areas among 36 Final report of the Digital Opportunity Initiative (DOI), Creating a Development Dynamic. The Digital Opportunity Initiative (DOI), a public private partnership of Accenture, the Markle Foundation and the United Nations Development Programme (UNDP) . 37
India's Information Technology Action Plan Part 111, 2000.
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
others: Y2K solutions, Euro Solutions, IT enabled Services, Netbased products, Web Technologies, Electronic governance, Electronic Commerce and Management of Convergence. STPI and private steps can host IT-enabled Service export ventures for which all facilities, concessions, procedures and policies applicable to Software Export will be equally applicable. A Government and industry funded consortium will be established that would scout for suitable business opportunities globally, and subcontract such projects to 'Grameen Data Processing Centers' that would be run and managed as profit centres by various local enterprises, thereby creating quality employment at grass root level. Create a venture capital fund with an initial funding of about US$ 100 million towards funding start-ups and entrepreneurial efforts for catering to IT Enabled Services Market. A Consortium of IT companies will be encouraged to establish 'Indian Institute of Global Services' specializing in Global Services for providing market intelligence on domestic and global services industry to disseminate information such as new trends, market conditions, key indicators, new opportunity areas, etc. The Institute will conduct research and suggest best practices, positioning of India as a global hub for IT Enabled Services, helping start-ups with marketing plans and contact databases, etc., design and facilitate courses for graduating and developing professionals for this sector. Courses on IT Enabled Services will be introduced as a vocational course under various schemes of Government of India. An industry consortium will be formed by active collaboration of Government of India, NRIs, leading Indian industrial houses, software companies and venture capitalists to address the huge opportunity offered by IT Enabled Services. Resource infusion from each of the stake holders, besides financial resources, may include mentoring for initial take off stage, establishing a global network to evangelize India advantage and enlist corporations/clients; CO-development of quziity infrastructure in India; regular advice to authorities on issues to be addressed; strategic and operational assistance; initial managerial deployment, etc. This consortium may also do a continuing job of building India's global brand equity in this area. Government will enable a paradigm shift to 'Hub to globally competitive value services' as against talent provider, as a means for sustaining India's advantage and protecting future earnings.
l. E-government framework India's vision for e-governance is to apply IT in the processes of government functioning to attain a S.M. A. R. T. (Smart, Moral, Accountable, Responsive, and Transparent) government. The strategic imperatives laid out to achieve this vision are:38 Developing the institution of nodal officers both within the Department of Information Technology and in other corresponding departments in the government for quick initiation and transfer of suitable technologies and packages enabling e-governance. Leveraging resources of various Indian ministries, departments, and other public-sector institutions to enable the adoption of electronic service delivery. 38 James S.L. Yong and Sameer Sachdeva, "India: e-progress in the States", Chapter 6 of E-government in Asia, J . Yong, ed., Times Editions, Singapore, 2003.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
Encouraging the development of similar mechanisms and dedicated institutions at the state level. Encouraging various constitutional agencies to adopt e-governance for effective delivery of service services and administration. Addressing privacy concerns through a clear statement of continuous commitment to the data protection and Internet security system, both in the public and private domain. The following are some key initiative^:^^ Each DepartmentIAgency in the Central Government and State Governments shall be required to prepare a Five Year IT Plan. 1-3 per cent of the budget of every MinistryIDepartment shall be earmarked for applying IT in the Departmentlsector; this investment will include not only the purchase of IT products, IT Software, but also for training and IT services; Reappropriation of the Department's budget for the IT sub-budget head shall be within the delegated powers of the Head of the Department.
NIC, at the national level, and technology service organizations at the State level, shall establish 'Framework Contracts' with reputed suppliers to provide a wide range of IT consultancy, specialist services and IT products to Government agencies to reach the benefit of lower costs through bulk purchases. India shall participate in international projects like 'Government Online' Project of G-8 countries so as to not only learn from the experience of others but also to contribute to the global experience in planning and implementing projects to promote IT in Government. Tele-commuting is recognized as a new modality of doing work in an office and labour laws accommodating the same shall be enacted. An option shall be given to employees, where feasible and efficient, to accomplish part of their work through telecommuting in the framework of 'Management by Objectives' (MBO). The Government of India shall set up a central repository of data elements in Government with the NIC and make it accessible through NICNET. A computerized Inventory of Government best practices for electronic access shall be maintained. Government shall stipulate IT literacy as an essential requirement for all future Government and public-sector employment; in the Annual Confidential Reports of government employees, a column shall be introduced regarding contribution to IT utilization in the departmentlorganization. A National Institute of Smart Government shall be set up to focus on all issues concerning IT-supported governance.
State Institutes of Public Administrations shall be re-engineered to help bring about IT responsive State Governments. Suitable floor space in Government buildings, which are not utilized during non-office hours, could be given to private educational institutions for IT training purposes in return for a proportionate number of free nominations of Government employees for IT training.
39
India's Information Technology Action Plan Part I, 2000.
35
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Several of the e-governance initiatives in India are carried out by the central government, with the driving force being the DIT. Many more high profile projects are championed by the State governments of 1ndia.40 2. National Level 1nitiatives4l (a) India Country Gateway
This project was implemented by DIT on behalf of the Development Gateway Foundation. It aims to develop and facilitate the participation of local and professional communities in virtual discussions. DIT has developed a prototype for the project, which covers key areas such as health, education, rural energy, and agriculture. The prototype portal was launched in late 2002. The gateway contains links to web sites of key government agencies and constituents, such as the Indian Parliament. The Parliament web site provides lists of daily synopses, Parliamentary questions, debates and proceedings, details of members, parliamentary committees, Bills and Acts and so on. Moreover, this web site allows citizens to submit feedback to their elected representatives.
(6) The Central Vigilance Commission (CVC) - A Best Practice example In an effort to further the idea of zero tolerance for corruption, the CVC in India has been sharing with citizens a large amount of information related to corruption. The CVC web site (www.cvc.nic.in) provides practical information on how to complain about the corrupt acts. The web site has published the names of officers against whom investigations have been ordered or penalties imposed for bribery. Newsweek magazine carried an article about this effort, calling it "e-shame".
The Department of Posts launched its first web-based product e-post in 2002. This product links Internet users with those who do not have direct access to the Internet. Each post office is given an e-mail ID based on its Postal Index Number (PIN), a unique identifier. Internet users can send e-mail to those who do not have a PC or Internet access of their own. The e-mail would go to the identified post office, then get printed out, and delivered in hard copy at the doorstep of the intended recipient. This is part of the programme for bridging India's digital divide. There are plans to give an e-post ID to every citizen in India.
(d) National replication of e-governance To facilitate knowledge sharing in e-governance by the different government agencies and states, the e-governance National Resource launched the web site www .egovdatabase. gov. in to archive and disseminate information on e-governance applications in India. The project enables any organization planning an IT project to instantly ascertain whether any similar project has already been implemented anywhere in the country. The intending implementers would then know who the key people in similar projects are and how to contact them. The database offers a unique opportunity to share the knowledge resource from the existing projects both domestically and internationally. In order to showcase technologies in the area of e-governance, a centre of excellence was established at DIT in August 2000. The Centre, the first of its kind in the country, showcases various e-governance applications and solutions that have been implemented. It also offers other services such 40 James S.L. Yong and Sameer Sachdeva, "India: e-progress in the States", Chapter 6 of E-government in Asia, J. Yong, ed., Times Editions, Singapore, 2003. 41
Ibid.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
as technical consultation, proof of concept, and technical presentations. It conducts programmes for creating awareness among decision makers in the central and state governments and helps them in defining and implementing policy and process changes. The centre draws upon expertise form leading companies, technical institutes and business partners in India and abroad to help initiate certain projects to address specific needs. 3. Examples of Indian States' Initiatives - Best
(a) E-Governance in Andhra Pradesh Andhra Pradesh is one of the most prominent states in India for IT progress and development. The vision of the state for the IT sector is embodied in the following statement: Andhra Pradesh will leverage IT to attain a position of leadership and excellence in the information age and to transform itself into a knowledge society. The strategic directions of the state are reflected in a blueprint called "Vision 2020", which sets out the goals, milestones, strategies and plans needed to realize the vision. The main goals are transparency, accountability and speediness. Some of the major projects of the state are:
(i) Andhra Pradesh State Wide Area Network (APSWAN) APSWAN is the backbone network for the state and was made operational last November 1999. It connects the state capital Hyderabad to some 25 centres, including all the district headquarters. APSWAN was the first state-wide network in India. This government intranet is used for voice, data, and video communications. Video conferencing is used extensively for administrative reviews and conferences, online distance training for government officials, demonstration of best practices form the departments and fast data transmission. In subsequent phases, it is planned to connect Mandal headquarters and other towns and villages with dedicated lines, dial-up and wireless facilities.
(ii) E-seva Through the web site www.esevaonline.com, a resident of Andhra Pradesh can access a wide selection of online services. The e-seva centre is a 24 X 7, one-stop shop for 32 government-to-citizens (G2C) and business-to-consumer (B2C) services. From payment of utility bills to the issue of birth and death certificates, permits and licenses, reservation of bus tickets and receipt of passport applications, the e-seva centres offer a wide range of services under one roof. Internet services like electronic payments, downloading of forms and government orders, and filing of applications on the Web are also offered.
(iii) Computer-Aided Administration of Registration Department (CARD) Land registration offices throughout Andhra Pradesh now operate computerized counters to help citizens to complete registration requirements within several hours instead of days or even weeks, as was necessary under the earlier system. The project has now expanded to more than 200 centres.
(iv) Andhra Pradesh Development Monitoring System (APDMS) APDMS is a pioneering project of the Planning Department, which was started in 2000. The purpose is to create base maps with habitation patterns. This includes the road network, the commu42
Ibid.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
nity infrastructure, demographic data, soil, and geo-morphological data. It combines the GIS with data from remote sensing devices. This information is used along with inputs from the Land Information System, socio-economic indicators, household survey database, and human development indicators.
(b) E-governance in Karnataka The Karnataka State has a decentralized set up such that most people do not have to come to Banglore, the state capital, for routine day-to-day business. Most decisions are taken at the village or district levels. For example, the Nondani project is aimed at making land registration simpler for citizens of the state. The Khajane project involves the extensive computerization of the state treasuries, making the management of state funds easier.
(c) Bhoomi This project involves the computerization of land records carried out by the Department of Revenue in Karnataka. The record of Rights Tenancy and Crops (RTC) plays a vital role in the life of Indian farmers. The records are required for establishing ownership of land, for recording the succession of ownership, for recording the crop details and for obtaining loans form banks. The project has changed the lives of the farmers who need a copy of an RTC. Before the project was established, there were normally delays, harassment, and bribery. Today for a minimal fee of Rs. 15 and a wait of only 5 to 30 minutes (as opposed to waiting for several days), a printed copy of the RTC can be obtained online at computerized land record kiosks (Bhoomi centres) in more than 140 offices. The state government is trying to make the system as a web-enabled central database where RTCs would be available online at any Internet kiosk.
H. Enhancing ICT innovation As outlined in the IT Action Plan Part 111, the Government of India considers ICT Innovation to be critical and has thus outlined some key initiatives: High level Institutional framework will be set-up to coordinate and focus Research, Design and Development (RD&D) efforts in the country. This will help in facilitating the formulation and implementation of policy framework on on-going basis for RD&D in IT; to identify, coordinate implementation of mission mode foundation projects in products, processes and technologies; and to monitor and steer the RD&D activities on an on-going basis. This effort will be coordinated initially by the Government with active participation of Industry. The government funded RD&D organizations (like DRDO, Space, Atomic Energy and others) will be encouraged to formulate long-term and short-term IT action plan and coordinate with the above mentioned Institution. Establish an Indian IT Design Council as a non-governmental, autonomous body that would:
1.
Institute awards for excellence in RD&D in IT;
2. Provide patenting assistance to developers; 3.
Institute a "Designed with Pride, in India" mark for IT products designed and developed in India. This Mark could have different "levels" (such as Silver, Gold, and Platinum, depending on the extent of design content).
Set up an Information Technology Development Board (ITDB) as a non-governmental, autonomous body that would:
Good Practices in Information and Communication Technolo~yPolicies in Asia and the Pacific
Government recognizes the need to manufacture IT products in consonance with the open system interconnect model. The Department of Electronics will institute measures for its revival and sustenance at world class level.
I. Other programmes 1. Local content generation
India has a large population with great linguistic diversity. Creating and maintaining locally relevant content for a country with 418 languages is a challenge. Nevertheless, local language content is slowly making ICT more relevant and accessible to a broader cross-section of the population. For example, India's Centre for Development of Advanced Computing has recently launched a scheme called iLEAPISP to create a free multilingual word processor to be made available to all Internet subscribers. On other fronts, some states such as Tamil Nadu have launched their own initiatives to support the standardization of local language software through interface programmes that can be adapted to word processors, dictionaries, and commercial keyboards for use in schools, colleges, government offices and homes .43 2. Planned
initiative^:^"
Convergence of print medium, databases and telecommunication has led to the advent of the electronic content industry. The Content industry has come to mean various commercial and non-commercial activities relating to the bibliographic, textual and statistical databases as well as the information, education and entertainment materials in the electronic form including audio, video and multimedia forms. The Government of India will give priority for promoting this human-resource intensive industry extensively in the country. Considering the vast global and domestic market, the content industry has a potential to grow to a size comparable to the computer software industry with enormous opportunities for income and employment generation. Content development being an integral part of any information system, the content industry is recognized as a priority sector for lending and according the same benefits for purposes of promotion and development as given to the software sector. The Government and its associated organizations are the largest producers of socio-economic and statistical information. These vast databases will be rationalized by using standardized formats and retrieval mechanisms and make them easily available on line to the planners, scholars and the public. All non-classified or declassified information in the possession of the government agencies will be made available to the content industry on non-exclusive basis. The terms and modalities of dissemination already approved by the Government will form the initial basis. The government will ing related market studies for the sector. Detailed creation and its marketing
fund and sponsor research on various aspects of content development, includand develop a short-term as well as a long-term vision and growth strategy research studies will be undertaken to identify specific areas for content at regional, national and international levels.
43 Final report of the Digital Opportunity Initiative (DOI), Creating a Development Dynamic. The Digital Opportunity Initiative (DOI), a public private partnership of Accenture, the Markle Foundation and the United Nations Development Programme (UNDP).
India's Information Technology Action Plan I, 2000.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
For the information generated or collected through its various agencies, the Government will evolve policy guidelines and a set of standards to classify or declassify the information at the point of origin or compilation. In the case of classified information, the period of classified status will be specified at the point of origin or compilation itself so as to facilitate automatic declassification of such information on expiry of the specified period. All the reports generated out of the R&D works funded by the government and its agencies will be made available for wider dissemination and commercial exploitation. The government will ensure establishment of a suitable mechanism for collection, compilation and timely publication (hosting) of such information in the electronic form. It will be made mandatory for all the universities or deemed universities in the country to host every dissertationfthesis submitted for research degrees on a designated web site. It will be maximally ensured that any information or report collected by the government will be in electronic form at the entry point itself. Similarly, all the information to be made available to the public by the government, such as budget documents, customs and excise rules, railway time tables, telephone directory, maps including public domain digitized maps, etc., will be made available in the electronic form. The national, regional and other public libraries will be required to develop databases of their holdings which will be hosted on a designated web site for free access to users. The Government in association with the industry will evolve appropriate guidelines, codes and systems to ensure that materials anti-social, unsuitable, illegal or posing a threat to national security are not put on the web sites. The Indian language based systems are crucial for the growth of the content industry and for spreading the impact of IT to the grass root level. All Government funded software tools developed, for handling information in Indian languages, will be actively promoted for widespread use and made available at nominal cost. India is known for its rich and diverse cultural heritage. It also possess a vast wealth of traditional knowledge. These are mostly in Indian languages and should be promoted and preserved for posterity. The Government will, therefore, take initiatives, through appropriate projects, to create electronic images of the information on the Indian arts and culture, for wider dissemination and research. Indian language software and content will be required to conform to the BIS standard IS 13194:96 for ISCII code and encrypt keyboard. An effective copyright protection system is a prerequisite for development of creative works in the electronic medium. Therefore, the Indian copyright law will be strengthened in this direction. Further, there is a need for global harmonization of copyright laws. The conclusion of the TradeRelated Aspects of Intellectual Property Rights (TRIPSs) agreement and of the two World Intellectual Proprietary Organization (WIPO) treaties, will be adopted for such harmonization.
A domain name registration system will be developed in a manner that allows robust and open competition and facilitates management of Internet names and addresses in India following the best practices available elsewhere in the world. There is a need to promote and encourage hosting of non-commercial materials related to linguistic, social and cultural aspects of the people by the public or private organizations. The Government will take initiative for providing web sites, free of cost, for such purposes. Government will encourage and
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
promote Indian companies and organizations to host their contents only on web servers located in India with Indian domain addresses and these will be made available at internationally competitive prices. Any information hosted on these sites will follow the guidelines evolved by the Government in association with the Industry. For enabling Inter-operability between equipment, data, practices and procedures, Standards will be evolved to integrate hardware, software and communication systems and to exchange information across boundaries of different systems. Creation of knowledge bases requires trained manpower for collection, compilation, analysis and production of value added information products and services. Specialized training programmes, through existing institutions, will be initiated to meet the requirement of trained professionals in these areas. Traditional curriculum being offered by the universities and educational institutions in various fields related to content industry will be suitably modified, such as library science, journalism and mass communication. Multimedia and Internet are the foundations of the future content industry. Creation of multimedia products require specialists in multimedia designing, editing, programming etc. Training programmes for these core professionals in multimedia, will be initiated in Engineering Colleges, Polytechnics and other concerned institutions. For providing global exposure to Indian content industry, the Government will project this industry through India pavilion in key industrial events like London Online. The government will, initially, sponsor such exposures through recognized Indian industry associations. The banking and financial institutions will be advised to recognize content development activity as an industry for providing venture capital and develop appropriate norms for financing this industry. A special venture capital fund will be created exclusively for electronic content industry. Suitable amendments will be made to all the existing acts and rules of the Government to recognize and treat the content in all forms (text, graphics, audio, video, visual, full motion, multimedia etc.) and all mediums (print, microfilm, optical, magnetic, Internet-based, etc.) alike for all statutory compliance and taxation purposes. To make the Indian content industry globally competitive, the royalty terms for licensing the copyrighted contents and the software provided by the global information providers and publishers, will be allowed to be determined by the market forces. RBI guidelines, in this regard will be amended suitably to remove the present royalty restrictions of 15 per cent for data (publishing) and 30 per cent for software.
A pilot project on digital library development, based on indigenous software, will be initiated. The project will be time-bound and implemented at one of the suitable existing libraries to serve as a model. The software so developed can be distributed to other organizations to accelerate the development of digital libraries in the country. Virtual libraries provide extensive information and instant access to users through information networks. The Government will promote a pilot project for creation of a model virtual library. The virtual library will be enabled to work out suitable copyright arrangements with the relevant publishers for providing the service.
A National Internet Center of Excellence (NICE), will be established in an existing institution to promote standards, assist digital content development in India, devise standards for content building and delivery, and research new technologies.
Part Two: Best Practices from the Ex~eriencesof More Develo~edCountries (India, Malaysia and Republic of Korea)
Games constitute one of the largest segment of digital content through such media as video games, TV Games, etc. Moreover, it would continue to command a large share of global digital media market for the next five years. Appropriate promotional measures will be taken to boost games software exports from India.
J. Lessons learned so far45 The Ninth Plan period has seen considerable achievement in the IT sector with some excellent experiments under what is generally known as 'E-governance'. But if the whole country is be benefit at a reasonably uniform pace of growth and G2C interface, a more detailed look will have to be given at the shape of things as they are desired. There is a great danger in allowing things to proceed in a segmented manner and not define a vision where the role, costs, pitfalls and gains pertaining to all segments of society including the industry, employer, employee, government functionaries and all other stake holders are clearly visible. The Master-plan of e-governance should be guided by the following: A clearly focused vision of what is the objective of introducing e-governance. The range and standards of delivery of information and services to the people must be defined with time frames within which they are to be attained. Any plan or scheme for e-governance should have sustainability; it should not be a mere novelty at government expense only for the sake of doing something that is in fashion. Standardization should be started without any delay otherwise confusion will ensue that would negate the advantages of use of IT. Areas of public funding should be clearly spelled out. The situation in various States should be gone into in details and appropriate plans and schemes suggested suited to different States. Interactivity must be built into all schemes of e-governance otherwise it will only remain as a labour saving device for the government functionaries.
1. Prerequisites for e-governance Before e-governance can be implemented as a national level initiative, some key systems and processes will need to be put in place. These in fact are important prerequisites for e-governance and could include the following:
Large-scale computerization: The introduction of computers in every departmentlministry of the central and State governments and their subordinate organizations is the starting point of e-government. This would involve huge investments for the acquisition of hardware and software. One possible way of reducing and distributing costs is that the Governments enter into arrangements for leasing of computers and gradually acquire them over a period of time.
Capability of Use of local languages in the IT systems: The access of information would have to be made available in the language most comfortable to the public user, generally the local language. There are existing technologies available in the country such as GIST and language software by which 45 Report of the Working Group on Convergence and e-governance for the Tenth Five-Year Plan (2002-2007). Government of India Planning Commission, November 2001.
Good Practices in Information and Communication Technolojy Policies in Asia and the Pacific
transliteration from English into other languages can be made. Other tools for local language can also be developed as progress is made of their use in the systems of government. (c) Awareness: Perhaps the most important aspect of e-governance, computerization and spreading of IT, is the bringing of a change in the mindset of the government functionaries who have been accustomed to work only in the manual mode. It will be necessary to train all employees in basic computer usage. (d) Infrastructure: Adequate and appropriate Infrastructure for Information Technology has to exist across the country with sufficient bandwidth. (e) Standardization: E-governance demands standards in all areas. Some of the key areas are: data encoding (ISCII or UNICODE), application logic for common horizontal applications, user interfaces, data dictionaries, etc. These standards will need to be put in place before e-governance can effectively be implemented. To develop open standards in line with the international standards for convergence. Government has to take into account the developments in International standards and it will be necessary to frame Indian standards for using these in the country. It is urgent and imperative that the Government should set-up a national standardization body with the following objectives: (i)
Development of high-quality technical standards covering all aspects of convergence concurrent with the technical advances. The body shall have study group for different aspects of convergence with members drawn from related agencies in Government, private and public service providers, experts form the field and technical Institutions (Engineering, Medical, Management and other institutions).
(ii) For looking into the interoperability issues. The CC1 envisages four different sectors for licensing and if the network, the terminals, the contents etc., have to work as a single harmonious unit then the different components have to interoperate seamlessly. To ensure this there is need for an independent body which will go into the interoperability issues and decide the course of action. The standardizing body should be made responsible for ensuring seamless interoperation of different components. (iii) To suggest the technology to be used for various applications. (iv) To undertake some of the pilot projects as technology demonstrators. (f)
Certijication Authorities: Public Key Infrastructure and Certification Authorities to provide digital certificates that help create an online identification and security system for the Internet allowing individuals, corporations and government organizations to conduct transactions and communications is an important requirement for e-governance and e-business.
(g) Knowledge Networking for better governance: Good Governance rests on the pillars of knowledge and recognition of this knowledge by the decision makers. Digitization of the entire set of knowledge within a network which links every decision makers and gives democratic freedom to everyone to access and make use of this knowledge paves the way for Digital Governance. The Government recognizes that the result of the privatization has so far not been entirely satisfactory. While there has been a rapid rollout of cellular mobile networks in the metros and states with currently over 1 million subscribers, most of the projects today are facing problems. The main reason, according to the cellular and basic operators, has been the fact that the actual revenues realized by these projects have been far short of the projections and the operators are unable to arrange financing for their projects and therefore complete their projects. Basic telecom services by private operators have only just commenced in a limited way in two of the six circles where licenses were awarded. As a result,
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
some of the targets as envisaged in the objectives of the NTP 1994 have remained unfulfilled. The private sector entry has been slower than what was envisaged in the NTP 1994. The government views the above developments with concern as it would adversely affect the further development of the sector and recognizes the need to take a fresh look at the policy framework for this sector.46
2. Suggestions for encouraging growth of Internet penetration4' It has been widely recognized that the diffusion of the Internet and its associated applications (e.g., e-governance, electronic commerce, e-banking, e-learning etc.,) can fuel the growth of a nation's economy. Internet significantly facilitates the process of development of the nations and its citizens in all respects, be it economic, social, or cultural. However, it must be noted that for sustaining such applications and Internet as a whole there must be a critical mass of Internet users. It is therefore very important to encourage the Internet growth and usage. To achieve this goal we should recognize that one of the most significant factors influencing the growth of Internet is the cost to consumers for Internet access and improvement in quality of service. Following are some suggestions which Internet users/gosl industry can support and request the Government/Regulator to adopt: Setting up of neutral Internet Exchange Point (IXP) in the Country to save Foreign Exchange on International Bandwidth, improve the quality of Service, cost reduction for access services thereby accelerating growth of Internet in the Country. To speed the spread of the Internet in India, the cost of Internet connectivity and bandwidth must be reduced and the quality of service improved. One of the most effective mechanisms to accomplish both cost and service gains is the Internet Exchange Point (IXP). An IXP interconnects Internet service providers (ISPs) in a region or country, allowing them to exchange domestic Internet traffic locally without having to send those messages across multiple international hops to reach their destination. Internet Exchange also reduces the network latency and the number of hops, resulting in better quality of Internet access and connectivity. Adopt a Flat rate tariff structure for calls made to access Internet. International data suggest that Internet development can be greatly facilitated by shifting away from per minute pricing regimes to pricing mechanisms that permit greater flexibility in billing for dial-up Internet access, such as the Flat rate billing for Internet. Encourage cost effective wireless access systems for Internet Access by de-licensing of 2.4 GHz (ISM) band for low power, short range outdoor W-LAN applications and last mile Internet Access. ISM band is de-licensed in most developed countries. Wireless technology like Wi-Fi and Wireless Internet can be effectively and efficiently utilized in the developing countries (specially in the rural and hilly areas) if the ISM band is de-licensed and the user is freely allowed to use the technology. Wireless can facilitate connectivity in areas where access is otherwise difficult to provide. Allowing Internet Telephony (without any restrictions). Currently the recent policy in India allows only the ISPs to offer Internet Telephony and that too in a very restricted manner. This restricted policy is detrimental to the interests of consumers, because it does not allow the consumers to enjoy the full benefits of innovation in technology. Popularizing the usage of cheaper inexpensive access devices for Internet. Steps are also required to reduce the cost of PCs through various duty concessions like concessions on Excise Duty, Customs Duty on components etc., and innovative technology uptake including second-hand PCs to become Internet enabled through addition of modules for this purpose.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Formulation of Government policies and regulations to facilitate donation of used PCs by corporate entities, government organizations and higher educational institutions to schools, local colleges and community centres. Proliferation of effective computer based education at the School and University level, particularly in small towns and non-metros . Policies and plans should be formulated and implemented for e-governance applications providing citizen services through Internet by suitable standardization and with an objective of increasing efficiency and improving citizen care. Increase the tele-density particularly in remotehnder-developed and rural areas. Encourage setting up of Cyber CafMnternet Dhabas (Kiosks) in rural and remote areas by offering Infrastructural facilities at subsidized cost and encouraging provision of soft loans facilities to such entrepreneurs. Tax incentives to consumers for using Online Services and institute measures to reduce e-transaction cost. Facilitate usage of alternate access technologies like Cable TV, W-LAN etc., to enhance the quality of service as well as to reduce the load on PSTN dialup network. Hosting up of Indian web sites/portals in Regional Languages and development of local contents for citizens services. Facilitate deployment of Broadband Internet and encourage its use. Develop innovative technical solutions like simultaneous voice and Internet services over wired as well as wireless local loop to enable cheaper and faster Internet access over PSTN Lines. Spreading greater awareness about the Internet and its potential among the masses.
11. MALAYSIA Malaysia has made significant progress in terms of creating the proper environment to take advantage of what ICT has to offer. The following discusses some key points in Malaysia's ICT efforts. Most of the materials were taken from the Eighth Malaysia Plan and from the study visit conducted during October 2003 .48
A. National ICT plan The necessary infrastructure and environment for the development of information and communication technology (ICT) was in place during the Seventh Plan period to enable Malaysia to move rapidly into the Information Age. The National IT Agenda (NITA), formulated in 1996, provided the framework for the orderly development of the country into an information and knowledge based society by 2020. The final outcome, as envisioned in NITA, is the creation of a Values-based Knowledge Society in Malaysia. As ICT presented the best opportunities to increase productivity and improve competitiveness, several programmes and projects were implemented to encourage a wider diffusion of ICT in the economy. A key initiative was the Multimedia Super Corridor (MSC), which was designated as a world test-bed for ICT development. In addition, a set of world-leading cyberlaws was enacted to provide an enabling environment for the development of ICT. The main cyberlaw was the Communications and Multimedia Act 1998, aimed at promoting deregulation, streamlining licensing procedures and categories as well as facilitating market liberalization. 48
Eighth Malaysia Plan, Chapter 13: Information and Communication Technology.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
Recognizing that ICT is an important enabling tool towards achieving this objective, the Government undertook various initiatives during the Seventh Plan (1996-2000) to facilitate the greater adoption and diffusion of ICT to improve capacities in every field of business, industry and life in general. These included the provision of incentives for computerization and automation, creation of venture capital funds, enhancement of education and training programmes, and the provision of an enabling legal environment to facilitate the development of ICT. The Seventh Plan period saw a rapid growth in ICT utilization. Investments in ICT expanded at a rate of 9.2 per cent per m u m from RM 3.8 billion in 1995 to RM 5.9 billion in 2000. This was largely due to the increasing awareness of Malaysians to the importance of production, diffusion and utilization of knowledge and information for improving competitiveness and overall economic performance. The provision of special incentives such as the abolition of sales tax on computers and components, and the granting of accelerated capital allowance for expenses on computers and other ICT equipment also assisted in increasing the usage of ICT. During the Eighth Malaysia Plan, more concerted efforts will be undertaken to position Malaysia as a competitive knowledge-based economy, with ICT facilitating the development. In this regard, the ICT infrastructure will be expanded, particularly to rural areas to bridge the digital divide and enable all citizens to have equitable access to knowledge and information. As the knowledge-based economy requires new skills, competencies and broadband connections for advanced multimedia applications, emphasis will be given to human resource development and network infrastructure to enable Malaysians to benefit fully from rapid technological development^.^^
1. Framework of the national ICT plan The National IT Agenda, aimed at transforming the nation into a knowledge-based society in line with Vision 2020, focused on human development and leveraging on the public-private sectors partnership. The framework was based on the balanced development of three key elements, namely, people, infostructure and applications. Figure 1. NITA ~ r a r n e w o r k ~ ~
49
Ibid.
50
http: //unpanl .un. org/intradoc/groups/public/documents/apcity/
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
The NITC also established the Strategic Thrusts Implementation Committee (STIC) to operationalize the Strategic Thrusts Agenda. Since its establishment, STIC managed to galvanize the public and private sectors to implement 30 projects. Examples of such projects included the E-Community Resource Exchange, National Grid of Learning, ICT Community Chest and SJ2005. The Ministry of Energy, Communications and Multimedia (MECM) is also tasked to monitor the ICT plan especially for areas that relate to the industry. Beginning October 2003, MECM has been designated as the primary government body for ICT policy formulation and serves as Secretariat to the NITC . The private sector plays a key role in policy formulation in Malaysia. Under the Malaysia Incorporated Policy introduced by the government in the 1980s, it has been a practice for government agencies to'have private sector inputs before policies are formulated. This is done either by havipg dialogs, seminars, workshops or through online consultations. Once a year, MAMPU sponsors a Malaysia Inc., conference to tackle relevant issues and concerns. The Malaysian government sees this as win-win since businesses tend to prosper this way and government collects more taxes. Specifically for ICT, policy formulation involves industry, business associations, service providers, consumers, related government agencies and academicians.
Government CIO For the entire country, the C10 has been identified to be none other than PM Mahathir Moharnrnad. The PM chairs the NITC and ensures coordination between the different public and private sectors in Malaysia. For e-government, the C10 is MAMPU's Director-General. Minister.
He reports directly to the Prime
3. Indicators The figure 2 below shows the various indicators used by Malaysia in tracking and monitoring their ICT progress:
Figure 2. Selected ICT indicators, 1995 and 2000 Indicator
1995
2000
Newspaper Circulation Per 1,000 Population Telex Subscribers Personal Computers (units installed) Personal Computers Per 1,000 Population Telephone Lines Per 1,000 Population Telephone Subscribers Mobile Phones Number of Internet Subscribers Number of Internet Users
Sources: Ministry of Energy, Communications and Multimedia, PIKOM, World Development Report, 199912000 and World Competitiveness Yearbook, 2000. Notes:
' Refers to 1998. Refers to 1999. JARING only.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
4. Evaluation
What policies have worked smoothly? Promoting MSC especially applications and software development MSC as shared services centre for contact centres, business process outsourcing, back-office processing and operations New regulatory regime under the Communications and Multimedia Act, especially on the promotion of competition for mobile and other applications services.
Which policies are more challenging in terms of implementation, monitoring and regulation? Narrowing the digital divide Content development Information security.
Are there any shortcomings in your current ZCT policy? Actions to correct/improve on them? On personal data protection.
B. Infrastructure 1. Infrastructure development During the Seventh Malaysia Plan period (covering 1996-2000), substantial investments were made in laying the communications infrastructure comprising fiber optics, satellite and cellular technology to support the development of ICT in the country. An extensive fiber optic network was installed covering 62,600 kilometres linking states and major towns across the country by the end of 2000. The fiber optic network enabled high capacity broadband transmission capable of carrying different types of traffic such as data, voice and video. With regard to satellite technology, Malaysia had four satellite gateways, namely, at Kuantan, Labuan, Melaka and Sematan, which provided connections to countries around the Indian and Pacific Oceans. Despite these investments, the penetration rates were still low. The national average for fixed line penetration was only 23.2 per cent while in the rural areas, the penetration rate was 11.7 per cent. For the MSC, a fiber optic backbone network covering 360 kilometres was completed during the Seventh Plan period. The backbone also involved the installation of Asynchronous Transfer Mode (ATM) switches at Cyberjaya, Wilayah Persekutuan Putrajaya and Bukit Jalil to support broadband multimedia applications and high-speed Internet access. The MSC broadband infrastructure consisted of four major rings, each ring having a bandwidth of 2.5 gigabits per second (Gbps) scalable to 10 Gbps. To ensure the high-quality of the infrastructure provided, a performance guarantee with financial rebates was introduced in 1999. Internet and wireless technologies represented two of the fastest developing technologies in the telecommunications field. By the end of the Seventh Plan period, six ISPs were granted licenses but only three had started to provide Internet access to their subscribers. To complement ISPs, Application Service Providers (ASPs) were also licensed. As at the end of 2000, there were 43 ASPs in the country, mainly in the Klang Valley and Pulau Pinang. With the advancement of wireless technology, new types of affordable access devices were made available to access the Internet. These included the Wireless Application Protocol (WAP) devices such as mobile phones, hand-held devices and set-top boxes.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
With a view to further accelerating the use of ICT in the rural areas, the Government will implement the Infodesa programme. Under this programme, eight Infodesa centres will be established on a pilot basis. These centres will provide ICT training to the local communities, develop content applications as well as become one-stop centres for information on government services. The centres can also be utilized for teleworking and distance learning. The Internet Desa programme, which was launched in 2000, will be expanded to cover 100 locations. The centres will continue to be located at post offices and will offer awareness and training courses to the users. Recognizing that significant access and equity gaps exist and that a substantial number of Malaysians will be at risk of being marginalized by the ICT revolution, a comprehensive and integrated policy as well as a framework for action to address the problem of the digital divide will be formulated during the Eighth Plan period. The policy will cover four important aspects, namely, ICT infrastructure plan for universal access, local content development, equitable access to affordable ICT products and services, and access to lifelong learning opportunities. How successful have governments and telecommunication service providers been in ensuring universal access to ICT and the Internet in the region? To a certain extent, the Universal Service Provision Programme has been quite successful especially in securing contributions from the service providers. The challenge is to be able to roll out the infrastructure quickly. Do you have any models for sustainability and success of rural communications? Malaysia believes that it has a good model since financing has not been an issue for them. It is in the implementation were the challenge lies.
D. Human resources development As part of the effort to meet the rising demand for ICT workers, particularly in the MSC area, the Multimedia University (MMU) was established in 1998 with two campuses, one each in Cyberjaya and Melaka. Equipped with high-speed ATMs, multimedia learning facilities and digital libraries, MMU offered a spectrum of ICT and multimedia-based courses at the undergraduate and post-graduate levels. By the end of 2000, about 9,000 students were enrolled in these courses. Of this total, about 22 per cent were ICT bachelor degree undergraduates. To meet the needs of the MSC, the Government successfully undertook a number of initiatives to adequately meet the demand for knowledge workers. These included measures introduced to increase the number of institutions of higher learning. This was accelerated by the awarding of MSC status to institutions of higher learning or their faculties that focused on training of knowledge workers in priority areas such as ICT, engineering and management. With the anticipated rapid growth in e-commerce, many public and private institutions offered business studies courses with e-commerce content. ICT-based training was also given emphasis among the working population to upgrade their ICT knowledge and skills. Under the Human Resources Development Fund (HRDF), RM 101.6 million or 14.7 per cent were disbursed for ICT-based courses during the Seventh Plan period. This involved the financing of 296,800 training places. To meet the increasing demand for ICT workers, under the Eighth Malaysia Plan, efforts will be made to improve and expand ICT education. At the school level, about 8,000 primary and secondary schools will be provided with computer facilities by the end of the Plan period while computer-aided teaching and learning will be intensified with the development of software for the various subjects. Internet access will also be made available to schools and for those in the rural areas where conventional
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
means of access may be a problem, access will be provided by satellite communication, especially the VSAT technology. The objective is to increase computer literacy among students as well as expose them to the benefits of the Internet, particularly those in the rural areas. More ICT and related engineering courses will also be introduced by both the public and private institutions of higher learning. A total of 122,910 students will be enrolled in these institutions by 2004, mainly at the diploma and bachelor degree levels. The private sector's involvement in the provision of ICT education will continue to be significant as 71 per cent of the total enrolment is from private institutions. ICT training will continue to be given emphasis as the pace of technological change in ICT will necessitate ongoing training for the ICT workforce. Firms will be encouraged to send their workers for training to keep their skills up-to date, thereby increasing their output and productivity. To facilitate this, the Government will provide tax incentives to reduce the cost of training to firms. The HRDF will also continue to provide disbursements for ICT-based training. In addition, new apprenticeship schemes in areas related to ICT will be introduced. The negative influences of the Internet, such as misreporting and abuse of knowledge, can pose a security threat to the nation. To counter such influences, a code of ethics in the conduct of activities over the Internet will be inculcated beginning at the school level.
1. Intellectual property protection
The Trade Marks Act 1976, enforced on the lSt of September 1983, provides for a registration system for marks (e.g., logos, brands, signs) used in relation to goods and services. The registration of a mark in relation to specified goods or services is valid for Ten (10) years from date of filing and is renewable for subsequent periods of Ten (10) years each, indefinitely. The registered proprietor is entitled to commence infringement action against others who use his mark without consent or lodge a complaint under the Trade Description Act 1972. The Patents Act 1983, came into force on the lSt of October 1986, to provide for a system for registration of patents and utility innovations in Malaysia. The Act specifies, among others, what is meant by "patentable invention" and what are non-patentable. Upon grant and if annual fees are paid, a patent is valid for Twenty (20) years from the date of application. The owner of a patent has the exclusive rights to exploit the patentable invention, assign or transmit the patent and to conclude license contracts. Infringement proceedings can be instituted against those who have infringed or are infringing his patent. The Copyright Act 1987, effective as of lStof December 1987, confers the exclusive right to the owner of a copyright for a specific period. There is no system of registration for copyright in Malaysia. A work that is eligible (literary works, musical works, artistic works, films, sound recordings, broadcasts and derivative works) is protected automatically if sufficient effort has been expended to make the work original in character; the work has been written down; recorded or otherwise reduced to a material form; and the author is qualified person or the work is made in Malaysia or the work is first published in Malaysia. The Act also specifies the circumstances amounting to and remedies for infringements and offenses . The Industrial Designs Act 1996, which is in force from the IS' of September 1999, implements a system for the registration of an "industrial design" in Malaysia, defined to mean the features of shape, configuration, pattern or ornament applied to an article by any industrial process being features which in the finished article, appeal to and are judged by the eye. The registration is for Five (5) years from 53
http:llwww.mdc.c~m.my as accessed on 7 October 2003.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
4. Pending initiatives
The greater adoption of e-commerce calls for a cohesive partnership between the Government, business and community. On the part of the Government, efforts will continue to be made to create a stable and supportive environment for the conduct of commerce and trade electronically. More attention will be directed towards the effective enforcement of the various laws and institutional mechanisms established. The Government will also undertake measures to build trust and confidence in e-commerce including security and privacy for consumers. Steps are being taken to amend the Patents Act 1983 for Malaysia to join the Patent Cooperation Treaty (PCT) administered by WIPO. This will offer an applicant seeking patent protection in a number of jurisdictions greater flexibility and efficiency, compared to the existing framework. The availability of international search and preliminary examination reports under the PCT will assist the applicant to ascertain whether to continue with the application and in which countries, before the full range of costs are incurred. In contrast, an applicant under the existing system is required to file separate national patent applications with the patent office of each country where protection is sought. The Government is in the process of drafting legislation on Personal Data Protection to regulate the collection, possession, processing and use of personal data according to certain prescribed principles. The objectives of the legislation are: (a) to provide adequate security and privacy in handling personal information; (b) to create confidence among consumers and users of both networked and non-networked industries; (c) to accelerate uptake of e-transactions; and (d) to promote a secure electronic environment in line with MSC objectives. The Government is also considering enacting: (a) an Electronic Transactions Act to facilitate transactions carried out by electronic means; and (b) an Electronic Government Activities Act to facilitate and enable interactions of government with public and between government agencies for efficient and secure electronic government services. The latter seeks to remove all procedural and administrative impediments to facilitate all e-government activities. Other initiatives being currently looked into are laws or schemes on security, consumer protection and the public good, dispute resolution, management of Internet addresses and domain names, transparency issues, and strengthening the monitoring, regulatory and enforcement environment. In developing Malaysia into a global ICT and multimedia hub, several initiatives will be undertaken to foster local capabilities in creative content development. Steps will be taken to reduce regulations for television and film content production to enable more market participation. The Content Forum, which was set up with industry players as members, will draft its own code of conduct as a means of selfregulation. At the same time, there will be minimal regulation on the production of online content so as not to impede the growth of the nascent industry. To further support and encourage the development of creative content industry locally, the Government will develop clear and precise rules on intellectual property rights protection. This will be complemented by effective enforcement to combat piracy.
F. E-business or e-commerce To establish a comprehensive and robust framework on e-commerce, a study on Electronic Commerce Strategic Directions for Malaysia was undertaken. The study, which was completed in February 2000, underlined the importance of: Having a critical mass, Building trust to conduct business on the web, Attracting inbound customers, Transforming organizations as well as, Enhancing policy and regulatory framework.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
Specific initiatives were recommended and these included Online Trading Post, Integrated Logistics Hub, Encryption Technology Development, Intellectual Property Management System and Internet Exchange. The implementation of these initiatives was aimed at positioning Malaysia as an e-commerce hub in the global market space. In order to support the development of e-commerce, Bank Negara Malaysia designated Malaysian Electronic Payment Systems (MEPS) to build and operate an online payment gateway between consumers and merchants for online transactions over the Internet. MEPS, owned by 27 local financial institutions, uses the Secured Electronic Transaction (SET) protocol as the standard for payment. MEPS also enabled transactions to be conducted using the Secure Sockets Layer (SSL) protocol. In addition, MEPS runs the Nationwide Payment and Clearing System (NPCS), Electronic Purse Smart Card (MEPS CASH), Payment Multi Purpose Card (PMPC, e-cash MSC Flagship Application) and Inter Bank Giro (IBG) . Most e-commerce, e-business and priority ICT efforts of Malaysia are covered under its Multimedia Super Corridor Initiative, described in detail in the next section.
G. Multimedia Super Corridor (MSC) Realizing the need to drive the economy towards higher productivity through information technology and high value-added economic activities, the MSC was established in 1996 to provide a comprehensive world-class ICT-enabled working and living environment to catalyze the development of a knowledge-based economy. The idea of the MSC has been directly attributed to Malaysian Prime Minister Dr. Mahathir M ~ h a m m a d ? ~As a global test-bed for innovative solutions, the enabling environment and incentives provided sought to attract leading global webshapers to use MSC as a hub as well as help spawn both local and foreign small and medium sized enterprises (SMEs). The interaction of foreign and local companies would create new value through the introduction of globally competitive, cutting-edge products and services and by increasing productivity in the economy. The MSC aimed at catalyzing a highly competitive cluster of Malaysian ICT companies nurtured to become world-class over time. To attract such investments, the Multimedia Development Corporation (MDC) was established as a one-stop agency to promote the overall development of the MSC. In addition, the MSC International Advisory Panel comprising prominent business leaders, policy makers and scholars from the global ICT industry was set up to provide advice on the further development of the MSC. Figure 3. Approved 911 MSC companies by sector as at 10 August 2003
"
James S.L. Yong, "Malaysia: Advancing Public Administration into the Information Age". ment in Asia, J . Yong, ed., Times Editions, Singapore, 2003.
Chapter 8 of E-govern-
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Companies with strong value-added activities, which were providers or heavy users of multimedia products and services, were given MSC status and enjoyed certain privileges and incentives offered under the Bill of Guarantees. These included the freedom of ownership, unrestricted employment of foreign knowledge workers, and freedom of sourcing capital globally. They were provided with competitive financial incentives including income tax exemption for up to 10 years or a 100 per cent investment tax allowance for five years. They were also eligible to tender for key MSC infrastructure contracts. As of the third quarter of 2003, more than 900 companies have been granted MSC status. 1. MSC Flagship Applications
To jump start the development of MSC, flagship applications were introduced to provide business opportunities for private sector participation. These flagship applications were categorized into two groups, namely:
1.
Multimedia development flagship applications 1.1. Electronic government 1.2. Smart schools 1.3. Multi purpose card 1.4. Telehealth
2.
Multimedia environment flagship applications
2.1. Research and development cluster 2.2. Worldwide manufacturing web 2.3. Borderless marketing
2.4. Technopreneur development flagship These applications attracted international market appeal. Countries such as Algeria, Botswana, Lebanon, Mozambique and Syria expressed interest in the various telehealth and electronic government applications. There were also ongoing initiatives to replicate the smart school model in a number of countries including Sri Lanka and South Africa. The electronic government (EG) flagship application was launched with the objective of improving government operations in terms of its internal processes and delivery of services to the public and to business. Leading-edge ICT technologies and solutions were to enable such change and reinvent the way government operated. The lead agency for this flagship application is the Malaysian Administrative Modernization and Management Planning Unit (MAMPU). Under this flagship, six pilot projects were implemented, namely, the Electronic Services (e-services) , Electronic Procurement (EP) , Generic Office Environment (GOE), Human Resources Management Information System (HRMIS), Project Monitoring System (PMS) and the Electronic Labor Exchange (ELX). The e-services project covered a range of services such as the issuance and renewal of driver's license, fines processing, driving test scheduling and utilities payment. These applications were expected to be made available to the public in May 2001. Under the EP project, the traditional procurement system of the government was automated to realize cost savings and faster turnaround times. Phase I of the system, which went live on a pilot basis on 6 October 2000, would benefit about 20,000 large and small suppliers when fully rolled out. Under the GOE, a generic set of ICT tools was developed such
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
as document management, messaging system, electronic meeting and decision tracking, which would assist the functioning of core processes, thus facilitating day-to-day operations and management of government offices. The system, scheduled to go live in April 2001, would not only increase the ICT awareness among government personnel but also improve their efficiency and effectiveness. The HRMIS project would enable about 950,000 government personnel to perform human resources management functions in an integrated environment through a single window interface. Employee productivity, motivation and satisfaction would be enhanced with the availability of better equipment and facilities and automation of work processes. By the middle of 2002, Phase I of the project was rolled out to benefit 150,000 users in the 10 pilot agencies identified. Meanwhile, PMS trial runs were conducted for the application of projects under the Eighth Malaysia Plan. The ELX aimed to be a one-stop centre for labour market information accessible to the public, both locally and overseas. The objectives were to improve the mobilization of the nation's human resources and to ensure that manpower utilization was optimized through the systematic matching of job seekers to job vacancies. The project became fully operational last November 200 1. The smart schools initiative was introduced with the objective of producing a new generation of Malaysians who will be ICT literate, creative as well as innovative and capable of leading the economy into the Information Age. The project, which was implemented on a pilot basis during the Seventh Plan, involved a total of 90 schools comprising the construction of nine new schools and the upgrading of 81 existing schools. These schools were equipped with state-of the-art multimedia/computing equipment and provided with comprehensive teaching and learning materials for four subjects, namely, bahasa Malaysia, English, science and mathematics. These materials not only enhanced the network-based curricula but also enabled students with varying capabilities to progress at their own pace. The Smart School Management System enabled school administrators to efficiently and effectively manage resources and processes required to support the teaching and learning functions of these schools. As a complement to the smart schools, Schools Network was also initiated to network Malaysian schools with selected schools around the globe. The multi purpose card flagship application was introduced to improve the ease with which Malaysians conducted routine transactions with the Government and private companies. Two major initiatives were carried out, namely, the Payment Multi Purpose Card (PMPC) and the Government Multi Purpose Card (GMPC). A series of milestones were achieved. The e-cash, a key application in both cards, completed its technical pilot during the Kuala Lumpur '98 - XVI Commonwealth Games, followed by the e-cash commercial pilot launched in September 1999. With regard to GMPC, field tests were carried out with selected users. It was targeted that a total of two million smart cards would be issued to citizens in the MSC and Klang Valley in 2001. The card provided a secure medium for storing key personal identification information, which included data on identity card, driving license and immigration entrylexit records. Health information was also to be stored on the card to allow medical practitioners instant access to basic and critical medical information that would aid diagnosis and care in emergencies. The GMPC became a test-bed for the creation of new leading-edge technologies by local companies, many in collaboration with other worldclass corporations. To facilitate e-business through enhanced security, a new application, the Public Key Infrastructure (PKI), was included in the GMPC. The Telehealth application was aimed at accelerating the achievement of Malaysia's health care vision towards creating a nation of healthy individuals, families and communities. During the Seventh Plan period, telehealth was implemented at 42 health centres and 41 other teleconsultation sites, many of which were located in the rural areas. The implementation of the telehealth project started in August 2000 and by the end of the year, one of its projects, Teleconsultation, had completed installation at all sites. The three other projects, namely, Mass Customized/Personalized Health Information and
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Education (MCPHIE), Continuing Medical Education (CME), and Lifetime Health Plan (LHP) completed their respective Phase I. MCPHIE and CME were nationwide in scope while LHP covered sites such as Hospital Kuala Lumpur, Hospital Kajang, Hospital Ipoh, Hospital Seremban and selected health centres nationwide. The telehealth flagship application was not just a point-to-point consultation but incorporated the full spectrum of multimedia technologies to bring benefits to all players in the health sector. The newest initiative developed under the MSC was the Entertainment Village (E-Village), aimed at becoming a regional centre for content development. Apart from providing world-class physical infrastructure for creative multimedia innovations by local and international investors, e-village was also targeted to catalyze the development of local content in the entertainment industry. The R&D cluster was designed to create a cluster of collaborating multimedia R&D centres and firms to produce leading-edge products and technologies while at the same time encouraging local hi-tech start-ups and increasing local R&D activities to improve Malaysia's competitiveness. To catalyze these activities, the Government implemented several projects, which included the setting up of the MSC Research and Development Grant Scheme (MGS) in October 1997 and the MSC Student Attachment Programme in 2000. Under the MGS, the Government provided an allocation of RM 100 million during the Plan period. The aim of the scheme was to enhance technological capabilities of Malaysian MSC-status companies, particularly SMEs, through R&D. Since its launch, a total of 19 projects with a value of RM 38 million was approved. The projects included a range of multimedia products and services such as computer telephony integration, interactive hearing aids for the hearing impaired and the transaction information management engine. The Student Attachment Programme was undertaken to provide industry relevant experience to students pursuing ICT-related courses. By working on areas identified by the industry, the students were able to relate coursework to on-the-job technical applications. The firms also benefited from having personnel working on specific problems and addressing their short-term needs. By the end of the Plan period, 51 students were involved in this programme. The Worldwide Manufacturing Web flagship strives to position Malaysia as a preferred location for manufacturing firms to locate their hubs to support and control their manufacturing operations in the region more efficiently and cost-effectively. The objective is to develop a conducive environment for high value-added manufacturing-related services, such as R&D , design, engineering, logistics support, manufacturing control, procurement and distribution. The lead agency is the Ministry of International Trade and ~ndustry.55 The Borderless Marketing flagship leverages on technology to enable businesses to transcend traditional barriers of time, space, or form to better serve their customers. It is an initiative to spearhead the growth of multirnedia-based service industries in the MSC, with emphasis on telemarketing, online information services, electronic commerce and digital broadcasting. The lead agency is the MDC . Since 1996, one of MSC's key strategic thrusts has been emphasized on the development of Malaysian ICT Small and Medium sized Enterprises (SMEs) through its strategy to catalyze a highly competitive cluster of Malaysian ICTIMultimedia and other strategic high technology companies that will which can become world-class over time. The SMEs are seen as substantial contributors to economic growth as they create new wealth and job opportunities in the knowledge-based economy. As a result 55 James S.L. Yong, "Malaysia: Advancing Public Administration into the Information Age". rnent irz Asia, J. Yong, ed., Times Editions, Singapore, 2003.
56
Ibid.
Chapter 8 of E-govern-
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
of MSC initiatives, as of April 2003, there were more than 1,850 Malaysian ICT SMEs compared to less than 300 in 1996. In recognizing the need to further enhance the MSC's efforts to develop Malaysian SMEs in the ICT and other strategic high technology industries, such as ICT, Multimedia, Biotechnology and other life science industries, the Government launched the Technopreneur Development Flagship (TDF) in November 2001. The lead agency driving the Flagship is the Ministry of Energy, Communications and Multimedia with Multimedia Development Corporation acting as the implementing agency for the ~lagship .57 The core objectives of this Flagship are to: 1.
To spawn and nurture a critical mass of strategic high technology industries such as ICT, Biotechnology and other life science start-ups
2.
To facilitate the growth of existing ICT SMEs into world-class companies.
H. Enhancing ICT innovation Access to venture capital is regarded as a prerequisite to develop enterprises based on innovative ideas and good business models. However, there was a lack of such capital, especially for the early stages of business development due to the reluctance of the traditional banking system to provide financing for these high-risk ventures as well as the lack of expertise to undertake a proper assessment of the project proposals. In view of these concerns, the Government established a RM 500 million ICT Fund in 2000 to provide financing to high-technology and ICT-based firms. Of this amount, RM 200 million was channeled through Bank Industri dan Teknologi Malaysia Berhad (BITMB) to provide financing to hi-tech industries including advanced electronics, ICT, biotechnology and advanced manufacturing. Another RM 300 million was channeled through commercial banks to provide venture capital financing for these industries. By the end of 2000, a total of 46 loan applications amounting to RM 21 1.1 million was received by BITMB while the amount of loans approved was RM 27.3 million. To catalyze the growth of venture capital companies and draw their interest into the ICT sector, the MSC Venture Corporation (MSC VC) was set up in 1999 as a wholly-owned subsidiary of the MDC. The MSC VC assisted MSC-status and potential MSC-status companies, particularly the SMEs to obtain venture capital funding. The MSC VC launched its first fund, the MSC Venture One, in June 1999 amounting to RM 120 million. The fund targeted companies either at start-up, growth or pre-initial public offer (IPO) stages of development. By the end of 2000, MSC VC committed investments in 10 companies amounting to RM 43 million. During the Plan period, the Malaysian Exchange of Securities Dealing and Automated Quotation (MESDAQ) was established to provide an alternative avenue of fund raising for technology and high-growth companies without a track record as well as start-up companies. Focus was given to 12 priority technology areas such as advanced electronics, ICT, telecommunications, biotechnology and aerospace. To promote foreign investments in MESDAQ, expatriation of funds was exempted from foreign exchange control rules. Efforts were also taken to improve the trading system with the introduction of a new Internet-based system and work was initiated for a link-up with the Kuala Lumpur Stock Exchange (KLSE). Since the commencement of trading in April 1999, three technology-based companies related to pharmaceuticals, ICT and multimedia were listed. To ensure Malaysia's continued competitiveness in the ICT industry, a research centre will be established, which will conduct studies, keep continuous tabs on the dynamics of the global ICT 57
h t t p : / / ~ ~ ~ . m d c . c o m . as m yaccessed last 7 October 2003.
61
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
industry, assist the industry in benchmarking and also provide advice to the Government on policy planning in the ICT industry.
I. Other programmes 1. Local content generation Under the Eighth Malaysia Plan, the Government will provide financial assistance to promote the production and distribution of locally created content, especially creative multimedia content based on local culture. In this regard, the establishment of a content development fund will be considered, with mandatory contributions from broadcasters and exhibitors. The fund will be used to partly defray the cost of content creation activities that require significant financial resources. The provision of fiscal incentives will also be considered to stimulate content development locally.
2. Open source software Efforts on the adoption of open source software both for government, academic and business use are being handled by MIMOS. MIMOS also established an Asia Open Source Centre.
Malaysia is also working on several e-tourism efforts. Recently, budget and incentives have been provided for e-tourism initiatives.
J. Lessons learned so far Based on conversations with some officials? Do not underestimate the size and complexity of the projects Cross agency integration is very important "There are issues integrating the new with the legacy systems" "It's a talent war out there" "Resistance to change is the key hurdle" "We must strive to develop common standards " The digital divide is a very serious issue that needs to be tackled Turf wars on sharing of data, data custodian, standards, approval process, and division of responsibilities Government re-engineering very important component of e-government People need to learn new skills, skills retraining is necessary Some government departments prefer to use vendors familiar to them.
Chapter 8 of E-govern58 James S.L. Yong, "Malaysia: Advancing Public Administration into the Information Age". ment in Asia, J. Yong, ed., Times Editions, Singapore, 2003.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Re~ublicof Korea)
Comments by Raslan of the N I T C : ~ ~ The need for a strong Promoter and Knowledge Broker A willing and available pilot community An experimental attitude Sustainability plan is important to ensure for project continuation The work is never ending. From discussions during the study visit: Implementation is the most important part. It is very easy to come up with world-class policies but implementation may be the hurdle that needs to be overcome Need for CIO's in government agencies. This is still a new concept for most government officials. There are some overlapping functions with respect to monitoring ICT plans and projects The need for content metrics Bridging the digital divide is quite challenging Malaysia is fairly advanced in terms of ICT policies The issue of convergence is also challenging since broadcasting and information for example, are handled by a different ministry than communications and ICT. A single regulator may be needed for both. The language barrier needs to be addressed. 87 per cent of the Internet content is in English while 70 per cent of the readership population uses Malay as the primary medium. There is lack of relevant and significant local content Issues on offensive content, what should be the role of all stakeholders We must understand how to address to issue of universal access To regulate or not to regulate cybercafes Wireless is a very important technology and can address the digital divide issue.
K. Best practices The MSC of Malaysia caught the attention of the world with its unique initiative to create an entire "cyber-region" and a base for a world-class technology, multimedia and content industry.60 The MSC initiative, headed by MDC a government-backed corporation, also identified several very important flagship projects that may be worth emulating in other countries. Please see the section on the MSC above. Another best practice in Malaysia is their Communications and Multimedia Act (CMA). Malaysia is the first in the world to enact a convergence law and it is a very good attempt at making the
59
http:llwww.nitc.org.my as accessed on 31 May 2002.
James S.L. Yong, "Malaysia: Advancing Public Administration into the Information Age". Chapter 8 of E-government in Asia, J. Yong, ed., Times Editions, Singapore, 2003.
Good Practices in Information and Communication Technolonv Policies in Asia and the Pacific
different sectors competitive. Malaysia pioneered the concept of having a comprehensive convergence law to address the challenges of ICT. The CMA in particular was based on the fundamental principles of transparency, technology neutrality, self regulation, social responsibility and consumer protection. CMA's purpose is (l) to regulate the converging communications and multimedia industries, (2) to establish a framework for regulatory interventions that will promote Malaysia's national policy objectives for the communications and multimedia industries, and (3) to replace the Telecommunications Act of 1950 and the Broadcasting Act of 1988. Various services were divided into four groupings with different and independent rules on licensing and regulation. Notable is the reorganization of the licensing. Licenses were made to be service neutral as well as technology-neutral. Licenses can compete in any of four markets within the sector; i.e., network facilities, network services or connectivity, application services, and content application services. There are two types of licenses under each category, individual and class. Only the activities with significant economic or social impact are individually licensed. The long-term objective is to move towards less regulation. A lot can be learned by other countries on Malaysia's implementation and experience with this convergence law especially as countries are now looking into developing laws and policies on convergence.
111. REPUBLIC OF KOREA Government policy has been pointed out as a major factor in the impressive growth of the Republic of Korean IT industry. First, from the very beginning of the privatization of the telecommunications service market in the 903, the government has consistently promoted market competition and private investments in the IT industry. The introduction of competition in the telecommunications market in 1990, 1994 and 1995 resulted in structural change in the IT industry. Local telephone services with 33 facility-based carriers, 4,890 value added telecommunications service carriers, and over 78 special telecommunications service carriers were providing services in 2001, and foreign investments were liberalized to a great extent. Second, establishment of the broadband information communications network and informatization policies, such as the efforts toward widespread informatization of the public sector, also contributed to the growth of the IT industry by creating demand for IT. Third, the government has implemented various programmes to facilitate R&D and training of IT human resources. Finally, the government is actively nurturing IT venture companies through the organization of an investment fund, establishment of support centres for new business establishment at universities, as well as software support centres. Furthermore, the restructuring of the venture capital market and KOSDAQrelated systems after the financial crisis of 1997 provided an environment conducive to the growth of the IT industry by facilitating financing of business enterprises. In summary, it can be said that the remarkable growth of Republic of Korea's IT industry was brought on by a fortuitous combination of entrepreneurship in the civilian sector and government initiatives.
Good Practices in Information and Communication Technolom Policies in Asia and the Pacific
1. Framework of the National ICT Plad2
(a) To maximize the ability of all citizens to utilize information and communication technologies in order to actively participate in the information society By providing the opportunity for all citizens to have access to Internet service and establishing a lifelong education system through online learning, all citizens will be able to nurture their creativity and to improve their ability to use information and communication technologies. As a result, all citizens will be able to participate in the information society as "prosumers" of information. Their ability to utilize IT will lead to the creation of added value in all aspects of society and to the enhancement of our quality of life.
(b) To strengthen global competitiveness of the economy by promoting informatization in all industries The government plans to strengthen the global competitiveness of existing manufacturing and service industries and to build a foundation for fostering new hi-tech industries based on our world class information infrastructure. As the IT industry is becoming an industry which strengthens the competitiveness of other industries, the productivity of existing manufacturing and service industries is expected to be further enhanced.
(c) To realize a smart government structure with high transparency and productivity through informatization efforts The government plans to enhance the transparency and productivity of all public administration processes as well as to provide prompt and reliable civil services through the use of information and communication technologies. More online public services in the areas of education, culture and social welfare will be offered in order to enhance quality of life. (d)
To facilitate continued economic growth by promoting the IT industry and advancing the information infrastructure
The government will construct the next generation network with fixed and wireless access which will provide high-quality broadband multimedia services at reasonable cost to anyone, anywhere in Republic of Korea. The government will provide the necessary support for new strategic IT products, develop core technologies, establish new creative industries and provide support for market entry overseas in order to become a global leader in information technology.
(e) To become a leader in the global information society by taking a major role in international cooperation International cooperation between Republic of Korea, China and Japan in the area of information technology provides an opportunity for Republic of Korea to take a leading role in the world market. Republic of Korea plans to lead regional cooperation in IT among Asian countries by establishing a promotion system for the information culture in the Asia-Pacific region.
62 E-Republic of Korea Vision 2006. The Third Master Plan for Informatization Promotion (2002-2006). From the publication of the Ministry of Information and Communication.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
2. Structure: policy formulation and monitoring of ICT initiatives"
Republic of Korea's policies on informatization are shaped and promoted by several responsible bodies, including the Ministry of Information and Communication, the National Computerization Agency, as well as central and local government. Most of all, there are two important government fora. Firstly, the Informatization Strategy Meeting, chaired by the President, and secondly, the Informatization Promotion committee, based on the Framework of the Informatization Promotion Act.
(a) Presidential Committee on government Innovation and Decentralization (PCGZD) This is an organization created to further answer the needs of the people. Its mission is to make the government of Republic of Korea more open, transparent, and closer to the people, through public sector reform. This committee is tasked with the implementation of e-government.
(b) Infomtatization Promotion Committee This committee evaluates the progress of the following: the implementation and alteration of the Master Plan for Informatization Promotion, project management and policy adjustment, and evaluation of Republic of Korea's Information Infrastructure. Moreover, to manage systematic and unified promotion of IT policies, the committee deals with many important issues regarding the Master Plan of NGIS Implementation, Baseline Framework for e-commerce promotion, long-term plan for the e-government project, and Management of Digital Contents. There are currently three committees operating under the Informatization Promotion Committee:
Informatization Executive Committee - reviews and evaluates issues and exercies power delegated from the Informatization Promotion committee.
Informatization Enforcement Subcommittee - responsible for planning operations and enforcements, evaluation of periodical achievements, improvement of laws and regulations, and issues on information sharing. It consists of about 24 subcommittees, one for each ICT policy and one for each industry sector.
Informatization Promotion Advisory Committee - it consists of outside experts. These members are invited to advise the government on Informatization policies. 3. Indicators
Republic of Korea uses the following Informatization Index, based on ITU:
Computer Index Number of PC units per 100 persons
Internet Index Number of Internet hosts per 1,000 persons Number of users per 1,000 persons
2003 E-Republic of Korea: Inforrnatization White Paper, from the publication of the National Computerization Agency.
67
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Telecommunications Index Number of fixed phone lines per 100 persons Number of mobile phone service subscribers per 100 persons
Broadcasting Index Number of TV units per 100 households Number of CATV subscribers per 100 households
4. Evaluation Republic of Korea's experinece in Informatization is summarized in the figure 4 below:
Figure 4. Evaluation of accomplishments
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
(a) Key success factors of Republic of Korea
(i) Establishment of a comprehensive informatization promotion framework and system The Framework Act on Informatization Promotion was enacted in 1995 Informatization Planning Office and Informatization Promotion Fund were established in 1996 Informatization Promotion Committee was established in 1996 and IT Strategy Meeting was organized in 1998
(ii) Establishment of a vision for the information society in response to the changes in the environment The government presented the visions and strategies for the information society, the lStMaster Plan for Informatization Promotion and CYBER REPUBLIC OF KOREA 21, grounded on the direction by the head of the nation. In order to implement these action plans, the Republic of Korean government has formed a close partnership with the private sector.
(iii) Upgraded information infrastructure The government has implemented continuous upgrading of existing information networks. More specifically, the nationwide PSTN constructed in 1980's and the information systems built as a part of National Computerization Project were upgraded and integrated into the information infrastructure.
(iv) Strategic investments in key sectors and promotion of market competition The government made initial investments in CDMA technology and promoted market competition in broadband and mobile telecommunication services in order to stimulate private sector investments.
(v) Cultural compatibility with information technology The rapid rise of the Internet population is partly a result of the compatibility between the Republic of Korean culture and the Internet. In addition, it is also attributable to the success of the e-literacy training programmes as well as to the partnership between the government and the private sector. (b) Current issues
(i) Slow spread of informatization in the public sector Informatization in the public sector has not been fully realized as a result of the lack of information sharing and system networking between governmental departments, organizations and agencies. In addition, government officials have been slow to open information regarding the administration to the general public.
(ii) Low IT investment in the SME sector With many of the companies in Republic of Korea being SMEs (Small and Medium sized Enterprises), the utilization and application of information technologies have been low. This is attributable to a weak infrastructure for e-business, which includes standardization, logistic support and legal structure. Also, low transparency in accounting systems and unrecorded transactions are additional obstacles to the widespread usage of information and communication technologies in the SME sector.
Good Practices in Information and Communication Technolom Policies in Asia and the Pacific
(iii) Handling the adverse efSects of information and communication technologies Among the obstacles that hinder the spread of information technologies are harmful activities which includes hacking, spreading computer viruses, privacy infringement and distributing indecent information. The government has established a legal framework to deal with and respond to these adverse effects, however, the shortage of specialists and experts to handle the problem and the lack of public awareness regarding these activities make the diffusion of information technologies difficult.
(iv) Insuficient investment in the research and development of advanced information and communication technologies Although Republic of Korea has constructed a world-class information infrastructure, engineers have not taken full advantage of it by developing advanced applications and useful technologies that would provide added social andlor economic value. At present, there is a skill shortage of high-level engineers and a lack of core technologies in the IT industry. What Republic of Korea needs is an innovative education system for training IT experts and promoting interdisciplinary programmes that would meet the international demand and standard for information technologies.
B. ICT infrastructure - best practices64 The government has taken concrete measures to revise its regulatory framework that governs the telecommunications service sector and liberalized the telecommunication services market faster than Republic of Korea's obligations under the WTO Negotiation Group for the Basic Telecommunications Agreement. The key laws governing the telecommunications industry entered into effect on 1 January 1998, and were amended in 1999 and in 2000. The laws and subsequent revisions outline the plans to privatize Republic of Korea Telecom and other state-owned firms, an increase in the limits on foreign ownership in the telecommunications service sector, and the introduction of such new services as international simple resale and Internet telephony. All of these factors and developments have led to a tremendous growth in the telecommunications service sector in a much more competitive market environment and further growth is projected, making Republic of Korea the world's leader in wireless telecommunication services as well as broadband Internet services and applications.
1. Leader in CDMA technology Republic of Korea first launched mobile communication services based on the Advanced Mobile Phone System (AMPS) analogue system in 1984. Research development of mobile communication based on digital technology was carried out at the national level from 1989 and service providers adopted the CDMA technology for the digital cellular system in 1991. Electronics and Telecommunications Research Institute (ETRI) carried out research and development on CDMA technology in concert with U.S. Qualcomm and succeeded in developing the first prototype in 1994 and finally launched world's first CDMA commercial services in 1996. All of these achievements led Republic of Korea to launch cdma2000-1x for the first IMT-2000 service in the world in October 2000, emerging as the world leader in CDMA technology. As a result, the number of subscribers exceeded 32 million as of this October, and the penetration rate stands at 67.7 per cent, and more then 7 million subscribers are using IMT-2000, 3G services. Republic of Korea is also one of the leading exporting countries of mobile communication terminals and systems.
IT Republic of Korea 2002, Vision for Building a Creative, Knowledge-Based Society, from the publication of the Ministry of Information and Communication, December 2002.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
The pioneering and challenging spirit of the government, private sector and research institutes have led Republic of Korea to realize the goal of launching the first commercialized CDMA service. The government policy of introducing competition to the market served as an opportunity for late entrants to successfully enter the market, resulting in improvement of service quality, lower costs to customers and development of related industries. Overall, the mobile communications industry including manufacturers of systems, terminals, repeaters and equipment as well as a number of wireless Internet companies were able to develop in a well balanced way, laying the foundation for a host of start-ups in this field to spring up. 2. Leader in Broadband Services
The IT industry, which has made significant contributions to the economic growth of the nation during the last decade, is facing formidable challenges posed by fierce competition, over-investment and unfriendly business environment throughout the world. Moreover, with the introduction of new services such as mobile phone services and VoIP, traditional telecommunication services face a decline in its business operation. Republic of Korea is not an exception and was also influenced by the global IT downturn. Total exports decreased by 9.3 per cent compared to the year 2000, and in particular, exports of semi conductors decreased by 39 per cent last year. Such a sharp recession in the IT sector is a severe blow to Republic of Korea's economy which is heavily dependent on IT export. However, during this economic downturn, Republic of Korea emerged as the most advanced country in providing broadband Internet services with an unprecedented rollout of the service in a short period of time. The number of total subscription stands at over 10 million households as of October this year. Contrary to negative views on the economic viability of this service at the outset, carriers were able to record positive profit during the first half of last year with the tariff set as low as US$ 30 per month. In addition, with the economies of scale, the price of ADSL terminal equipment fell from US$ 700 to less than US$ 100, making the service even more available to consumers. Broadband Internet, which is 32 times faster than that of the dial-up modem on average, can not only utilize the idle facility of the backbone network, but also promote the related equipment and component industries, nurturing a positive economic cycle in the future. In addition, the high-speed broadband Internet service will pave the way for multimedia contents, application services and e-commerce to prosper. With the advent of broadband Internet services, Republic of Korea has shown that the traditional telecommunications industry can forge a brighter future by actively participating in the rapidly growing Internet industry. The notion of providing broadband lnternet service to newly constructed apartment buildings, known as Cyber apartments, was conceived by innovative construction companies and a competitive local exchange carrier, Hanaro, which has entered the broadband Internet service market. The success of Cyber apartments and Hanaro's rapid growth in this market induced Republic of Korea Telecom to launch the service as well, which then triggered a cutthroat price competition among the service providers. This is only one of the many reasons for the successful introduction of broadband Internet services in Republic of Korea. The residential structure, approximately one-third of which is composed of households living in clustered apartment complexes, also made the deployment of broadband Internet service less expensive. The VoIP service combined with the feature of free call service has served as an extremely attractive application as well. But most of all, the vision and consistency in government policies to expedite the informatization of the nation played a crucial role. The government's hands-off policy with respect to new services and policies based on the market principle made the broadband Internet market more competitive and profitable at the same time. In the rapidly changing telecommunications
Good Practices in Information and Communication Technolony Policies in Asia and the Pacific
industry, the government has carefully fulfilled its role of providing an environment conducive to innovation and competition. 3. Providing a Level Playing Field
(a) Number Portability Recognizing the difficulty of introducing competition in local loop competition without number portability which allows customers to reduce the transaction cost of changing service provider, the government announced detailed plan to implement number portability in fixed telecommunication services in January 2001 and for the mobile market in January 2002.
(b) Local Loop Unbundling The Telecom Business Act of Republic of Korea mandated a new obligation in December 2000 to major telecom service providers to provide their unbundled elements to competitors. Furthermore, the government finalized the details of the obligation and relevant pricing scheme in December 2001, so that unbundling obligation is now effective de jure as well as de facto in the Republic of Korean marketplace. It is noteworthy that Republic of Korea enacted its statutory and regulatory requirements for incumbent facilities-based service suppliers (KT, Hanaro and Thrunet) to provide unbundled network elements to their competitors when the country was already well on its way to leading the world in broadband access penetration rates. The Telecom Business Act was enacted in December 2000, and the government finalized the regulation setting out detailed requirements for unbundling, including pricing, in December 200 1.
(c) Carrier Pre-Selection Preselecting a long-distance carrier allows end-users to use the long-distance carrier of hislher choice without dialing additional codes. In order to create a level playing field for competitors and enhance user convenience, Republic of Korea introduced carrier pre-selection in November 1997 and provided the guidelines for implementing the carrier pre-selection process in March 2002.
C. Human resources development65 With the emergence of the new IT businesses and the steering of traditional industries into the IT sector, the demand for skilled labour is increasing rapidly. There is currently a shortage of approximately 40,000 skilled workers in the IT industry. In the future, this labour shortage will reach as high as 140,000 workers by 2005. To overcome the current and future shortage, the government has invested 33.5 billion won in support of education in the information and communication area, establishment of a technical high school specializing in software development, and basic research in related subjects. Furthermore, the government has provided support for the development of a University Information and Communication Research Center, an Information and Communication University Overseas Scholarship Program for ASIC design, and JAVA training. The government has also sponsored information and communication retraining courses for the unemployed with high academic backgrounds from traditional industries. This will assist such qualified unemployed to find jobs in the IT sector or to start new IT businesses. In addition, government support has been provided to IT professional education organizations, cyber universities involved in the field of 65
Ibid.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
information and communications, the invitation and training of foreign IT specialists and experts. To further develop human resources in the IT field, the government has provided computer literacy training and education aimed at elementary and middle schools, housewives, the military, and the disabled. The government will invest approximately 430 billion won in expanding the involvement of regular educational organizations in information and communication education, as well as cooperation with overseas schools and universities. The government also plans to sponsor the retraining of industrial workers, bridge the digital gap among the populace, and develop a highly skilled workforce for the IT field. The government will expand its investments in discovering gifted IT talents in their early stages and nurturing them to contribute to the world economy.
1. Transforming the legal system for the information society
(a) Evaluation of accomplishments Approximately 180 laws relating to e-government, e-commerce and distance learning have been either enacted or amended by the year 2001. The purpose of these measures was to provide a boost for the rapid transformation of the legal system in preparation for the information society. Improvements were implemented in the laws and regulations that hindered the development of the information society. However, there is a currently a lack of in-depth legal research on the basic principles governing the information society.
(b) Policy Directions
(i) Establishing a legal system appropriate for the information society The government will examine the necessity of amending general laws, which include Constitutional Law, Civil Law, Commercial Law and Criminal Law for the purpose of establishing general rules which govern the information society. The government will implement legal and institutional reforms in each of social areas associated with the government, the business sector, and individuals.
(ii) Redesigning institutional mechanisms On the basis of extensive interdisciplinary studies of the information society, the government plans to redesign institutional mechanisms in order to ensure the stable functioning of the information society. The government plans to adapt to the rapidly changing international legal environment, and participate actively in the formation of international norms and standards governing the information society.
(c) Policy Plans
(i) Adjusting basic laws and institutional mechanisms to the information society (ii) Establishing a legal foundation to reflect the society-wide changes First, the government plans to amend the Framework Act on Informatization Promotion to incorporate fundamental principles of the information society. In consideration of the significant role of technology in the information society, the government plans to encourage academic interactions between natural science and social science fields. In addition, the government should lead the necessary changes E-Republic of Korea Vision 2006. The Third Master Plan for Informatization Promotion (2002-2006). From the publication of the Ministry of Information and Communication.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
not only in formal systems, but also in informal systems including cultural customs, tradition, ethics, and SO on.
(iii) Examining the necessity of revising the general laws For the information society, amendments may be required in the general laws including Constitutional Law, Civil Law, Commercial Law, Criminal Law, and Procedural Law. The government plans to incorporate into the constitutional law basic information rights regarding the right of access to information, the right to control personal data, and corresponding obligations of the State to ensure those rights. The current civil law based on ownership and transaction of tangible goods needs to be transformed into a civil law for the information society which is applicable to the usage of intangible goods. The government is examining the possibility of electronic forms of checks and bills, and the procedures and effects of electronic insurance contracts. Also, the government recognizes the impact of IT and cyberspace on the doctrines of Criminal Law and the possible revisions thereafter. Amendment of Procedural Laws is under consideration in order to cope with new systems such as remote investigations and electronic courts.
(iv) Revising laws for the Information Society The legal system will undergo some changes to reflect the needs of the information society in each of the social areas associated with the government, the business sector, and individuals. The government will refine relevant laws for e-democracy such as the Political Party Act, the Election Act and the National Assembly Act in order to facilitate the formation of cyber political parties, stimulate internet voting, and communication between political leaders and citizens. The government will amend relevant laws to enhance the utility of public information resources, and promote the joint usage of administrative information, and online civil services, while retraining human resources, and improving existing administrative systems and procedures. The government will refine the education system and laws for the cultivation of human resources and is considering giving a tax break for retraining. Furthermore, legal support is needed for telemedicine, digitization of medical records and online provisions of medical information as well as for an efficient social security system utilizing IT, and for securing the right of access to IT equipment. Institutional mechanisms will be redesigned in accordance with new technological developments. In addition, changes will also be made in the media regulation system as a result of the technological convergence of broadcasting and telecommunications. There is also convergence of information technologies that is occurring with other fields. The convergence of information technology and biotechnology calls for both a legal and ethical response to the growing problems of personal data protection, artificial internal organs, human clones, and so on. The convergence of information technology and environmental technology calls for a legal response to such problems of DNA altered agricultural products and electro-magnetic wave hazards. Thus, the government is looking ahead by promoting interdisciplinary studies for the convergence of science, technology, and art. As such, in order to cope with the rapidly changing international legal environment of information technology, Republic of Korea will actively participate in the decision-making process at the international level through international organizations such as WIPO, OECD and ITU.
2. Ensuring safety and reliability of Cyberspace
(a) Evaluation of Accomplishments Legal and institutional foundation for the information security was set with the enactment of the Digital Signature Act and the Information Infrastructure Protection Act and the revision of the Act on
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
Promotion of Utilization of Information and Communications Network. However, threats from cyber terrorism acts still exist owing to weak public awareness regarding information protection, and the shortage of budget allocation and specialists in information security to deal with this issue. There has been a rapid spread of indecent materials concerning pornography and violence which is contaminating cyberspace. The collective damages as a result of online acts of fraud, illegal pornography sites, spamming, hacking and computer viruses, are becoming more severe. Efforts by internet businesses and civic organizations to control and monitor these adverse acts are still not enough to resolve this pervasive problem. As major social functions depend heavily upon information systems and telecommunication networks, the probability that major information and telecommunication facilities will become attacked by acts of cyber terrorism will become higher. At the same time, as more countries around the world are making efforts to obtain information and intelligence with information and communication technologies, there is a greater need to establish a foundation for utilizing cryptographic technologies.
(b) Policy Directions
(i) Ensuring a safe and sound society through the systematic management of the national information infrastructure The government will establish an information security system against acts of cyber terrorism such as hacking and the spread of computer viruses to ensure the safety and reliability of major information and communication facilities in the nation. In addition, the early warning systems to effectively deal with these acts will be strengthened. As well, efforts will be increased to strengthen domestic and international cooperation between information security institutions and organizations.
(ii) Developing core information security technologies and training new information security experts The government will promote the development of leading-edge information security technologies such as next generation intelligent network security systems in response to the rapid changes in information and communication technologies. The government plans to increase public awareness and to educate the public on information security and to support the training of new experts and specialists in the information security field.
(iii) Strengthening cooperation between the government and the private sector for a sound and healthy cyberspace The spread of information regarding the seriousness of the distribution of indecent information on the Internet will help raise public awareness on this matter. In order to secure the soundness of cyberspace, the government will encourage education in ethics regarding the Internet and cyberspace and strengthen monitoring activities by non-governmental organizations and private businesses.
(c) Policy Plans
(i) Implementing preventative measures and establishing a response system against acts of cyber terrorism (ii) Establishing a cooperative partnership to prevent acts of cyber terrorism (iii) Strengthening efforts to prevent and effectively respond to cyber terrorism
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
With the designation of major information and communication facilities critical to the national defense and the economy, the government will implement a systematic analyses of their weaknesses and strong security measures to protect these facilities. In addition, government efforts will include strengthening the partnership with the private sector to prevent and effectively respond to cyber terrorism. The government will strengthen the early warning systems for possible computer emergencies such as hacking and dispersion of computer viruses. Also, the government will establish and operate an information sharing system and analysis centre for each area of the government, finance, telecommunications, and SO on.
(iv) Establishing domestic and international cooperative partnership systems as a means to promptly respond to adverse acts The Computer Emergency Response Team (CERT), internet service providers and vaccine software developers will be encouraged to share information regarding these adverse acts. Moreover, the government plans to create greater public awareness concerning information security and to promote prevention methods and activities to improve the level of information protection. Republic of Korea will play an active role in Forum of Incident Response and Security Teams (FIRST). The government will establish a regular monitoring system and train new special investigators as well as develop new investigative methods to fight against computer crime. (v)
Protecting critical government information
(vi) Introducing a safe management system for enciyption keys which are used for protecting critical government information Instead of the manual management of sensitive documents, automatic management systems will be introduced by way of extensive application of information security systems with encryption devices which encrypt and decrypt secret documents and self-generate management numbers and store management records. In addition, the security of information systems will be tightened through monitoring in order to prevent unauthorized access to these systems and secure the integrity of electronic documents of the government.
(vii) Taking strong measures to prevent tapping electromagnetic pulse emanations Technical requirements for shielding electromagnetic pulse emanations will be established and the development of Transient Electro Magnetic Pulse Emanations Standard (TEMPEST) will be promoted. Devices shielding electromagnetic pulse emanations will be developed and distributed to institutions handling critical and sensitive information. 3. Creating a sound cyberspace
(a) Creating a sound "cyber culture" with the establishment of an ethics system for cyberspace The government will promote the development and distribution of educational programmes and public relations films for establishing ethics and standards in cyberspace. In addition, the education in cyber culture ethics will extend to students, teachers and parents. The government will facilitate easier access to relevant information especially for youths through the construction of a special portal and the active distribution of the "white list".
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
(b) Encouraging self-regulation measures regarding the security and access to information For the private sector, self-regulation measures are being encouraged by the government regarding the security and access to information. The government will distribute the "selective access software" for internet users for select access to the wide variety of information available on the internet. In addition, the government plans to support activities of civic organizations and information provider organizations which monitor and review indecent information and materials in cyberspace.
(c) Taking strong measures against the infringement of human rights in cyberspace The government is taking strong measures against the infringement of human rights in cyberspace such as defamation, sexual violence with the establishment of the Support Center for Cyber Human Rights. The centre will maintain a close partnership with other civic organizations. Additionally, a Cyber Dispute Settlement Committee will be organized to effectively handle and quickly settle disputes concerning human rights infringement.
(d) Supporting the prevention and the remedy of computer or online game addiction The government will develop and distribute diagnostic methodology for computer addiction based on the cultural characteristics of cyberspace in Republic of Korea. The Cyber Addiction Information Centre and the Centre for Internet Addiction Prevention and Counselling will provide counselling services, develop prevention and counselling programmes, and raise professional counsellors for internet addicts.
1. Promoting informatization of SMEs
(a) Networking all companies in Republic of Korea to the internet, expanding the bases of e-business throughout the country To this end, the government will provide the necessary support for internet access of SMEs. Networking SMEs will promote the formation of independent markets for SMEs and productive e-businesses. In addition, the government will provide aid to SMEs without sufficient funding and technologies to adopt IT through the integrated services by ASPS (Application Service Providers), as well as fulfil the informatization needs of 30,000 SMEs. The government will construct a network for a comprehensive e-business support system and provide services in concentrated industrial complexes.
(b) Constructing an industrial information distribution system to help SMEs enhance their competitiveness and reduce the cost of obtaining information The government will encourage major industries such as machinery and electronics to develop information databases of the industries and integrated search systems of industrial information. The government will also encourage SMEs to organize associations for community-type B2B e-commerce on a small scale to stimulate e-commerce in SMEs and to build the infrastructure necessary for the informatization of SMEs.
67 E-Republic of Korea Vision 2006. The Third Master Plan for Informatization Promotion (2002-2006). From the publication of the Ministry of Information and Communication.
Good Practices in Information and Communication Technolom Policies in Asia and the Pacific
2. Improving logistics and payments systems for promoting B2B e-commerce (a) Supporting the construction and establishment of a joint logistic system to promote B2B e-commerce in each industry The logistic system will be linked to relevant systems such as the financial information system. The government plans to construct advanced logistic systems based on ITS and GIS, and also establish realtime logistic systems through the linkage with wireless telecommunications networks. To do this, the government will construct in stages a new infrastructure such as wireless telecommunications networks utilizing UHF as well as taking full advantage of the existing infrastructure including current mobile telecommunication networks, satellites, broadcasting networks.
(b) Expanding the infrastructure for e-payment to facilitate the growth in B2B e-commerce In order to secure the safety of e-money, a personal identification system and a security management system will be introduced. The government will revise and improve laws and regulations related to e-payment to ensure a reliable and safe environment for e-commerce.
3. Providing a safe and reliable online business environment (a) Establishing an online trust management system and enhancing the level of reliability of companies in cyberspace To this end, the government will promote the implementation of a certification system as well as encourage self-regulation of the private sector. The certification system will be strictly managed to secure and maintain its credibility. Online trade usually involves consumer risk since the quality of the commodity can not be verified before purchase. To minimize these risks, the government will provide online quality information concerning trade products. For commodities for which online trades are delayed due to the uncertainty in quality, the government will establish a certification system. In addition, the government will encourage self-regulation and self-monitoring measures within the private sector as well. By providing information on the quality level of agricultural and fishery goods, the government will encourage the production and distribution of high-quality and safe products.
4. Protecting e-consumers (a) Promoting greater consumer awareness by providing sufficient information and expanding education so that consumers can protect themselves from possible damage or harm The government will encourage monitoring activities by consumer coalition groups. The government will also promote an online Alternative Dispute Resolution (ADR) system, through which the concerned parties can directly settle disputes on the internet.
(b) Establishing a dispute resolution mechanism regarding e-commerce issues which will systemize all processes for consumers to utilize with ease as an alternative means of dispute resolution The government will develop an effective damage relief system for online international trades. For this purpose, the government will establish a system responsible for consumer education, and counselling for those who incurred damages in online international trades. The government will also encourage the efforts of private organizations for the establishment of a certification system for international authentication.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
5. Protecting personal information involved in e-commerce
(a) Promoting the utilization of cryptography technology to protect the confidentiality of documents and personal information involved in e-commerce The government will develop core technologies in cryptography, focusing on key management technologies which are essential for the prevention of unauthorized use of cryptographs, and technologies for evaluating reliability of cryptographic systems.
(b) Expanding education programmes to create greater public awareness to protect personal information, and monitoring web sites and conducting field surveys to ensure that e-businesses observe relevant laws To protect from spam mails, the government will strengthen regulations against spamming as well as encourage the self-regulation of the private sector.
(c) Supporting activities for relieving damages from the infringement of personal information and revising laws and regulations concerning this issue Activities of the dispute resolution committee of personal information are responsible to promptly handle and relieve damages from the infringement of personal information. For the effective protection of personal information, the government will continue to improve relevant laws and regulations and prepare detailed criteria for the protection of personal information.
(d) Encouraging self-regulation of the private sector for the protection of personal information To this end, the government will construct a network in which civic organizations, businesses and user groups can discuss possible methods for the effective protection of personal information and self-regulation. To promote these activities in the private sector, the government will introduce a certification system for the protection of personal information.
(e) Promoting international cooperation for the protection of personal information The cooperation with the OECD and EU is important in creating a conducive environment for the protection of personal information in accordance to international standards.
F. ~-~overnrnent~% best practices 1. Development of e-government
(a) IS' Stage Republic of Korea's strides for e-government began in the mid 80's when the 'National Basic Information System' project was first implemented. Through this project, national basic information was systemized into databases for more convenient government administration. This included resident registration, real estate, vehicles, etc. Now, services of these fields are provided anywhere regardless of the applicant's residence.
68 Changing Republic of Korea with e-government: The Launch of Key Initiatives, from the publication by the Ministry of Information and Communication and the National Computerization Agency.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Since the mid go's, 'Republic of Korea Information Infrastructure' project was put forth in time with the trend of building information superhighways in advanced economies. Also by establishing 'Framework Act on Informatization Promotion' as the legal background, Republic of Korea has achieved much progress in informatization. The world-class information and communication infrastructure with the highest broadband Internet penetration in OECD member economies is a good example.
(b) 2nd Stage Real estate registration, patent application, and military administration services came online and e-document approval and exchange spread rapidly within the government. It was the time of informatizing administrative procedure of central and local governments for the enhancement of productivity. Especially in June 1999, the Ministry of Government Administration and Home Affairs and the Ministry of Information and Communication jointly established the 'Comprehensive Plan for e-government' and a more systematic framework for Republic of Korea's e-government implementation was mapped out. Since 2000, the informatized online administrative services have been transformed from governmentoriented services to citizen-oriented services. More civil services have been brought online and more information integrated for the convenience of the people. (C)
3rd Stage
Republic of Korea's efforts to implement e-government were even accelerated in January 2001 by the establishment of the Special Committee for e-government. The Committee, composed of experts and professionals from the public private, and the academia, is under the Presidency and has continuously supported and monitored the eleven high-payoff initiatives to be completed by the end of 2002. The initiatives were already implemented and in service since November 2002.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
(i) Single Window e-government (G4C) www .egov.go.kr Description
The e-government single window, which provides services in the areas that cover over 70 per cent of all civil services-residence, real estate, vehicle, tax, and procurement - has been established. The G4C (government for citizen) system allows people to get information on 4,000 kinds of civil services and 393 official documents via the government portal, ranging from census registration copies and tax payment certificates to business registration papers, and receive them by mail or at nearby offices. The e-government single window has been established by the informatization of 21 common duties of the local government offices which include residence, vehicle, and family register, etc. The establishment of a comprehensive administrative information system that allows information to be shared and integrated among offices also contributed to the services of the single window e-government. In addition, the number of documents needed in order to receive civil services has been greatly reduced by enabling the government to verify the information through the e-government single window. It is no longer necessary to submit 20 different kinds of civil documents such as copies of resident registration, transcripts and abstracts of the consensus register, etc. Instead, the government officials will view them online.
Value Thanks to the sharing of administrative information, the number of necessary attachment documents and the number of visits to government offices has been drastically reduced. The major civil services can be applied for over the Internet, greatly enhancing the convenience of citizens. Also, the process of civil services is open to the public on real time, contributing to transparent administration. And, when in the processing of a civil service, a civil worker needs the information that another institution is holding, it is possible to access that information through the single window, leading to much more accuracy and efficiency in administration.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
(ii) National e-procurement Service (G2B)
Description In order to increase the competitiveness of the procurement administration, its routine, redundant, and inefficient procedure needed reform. Meeting such need, the Republic of Korean government simplified the procurement processes into one single window by building a government procurement portal system that brings online all bidding information of the public sector. It is now possible for businesses to search for bidding information of the public sector and to participate in the bidding as well as check the processes real-time with only one registration to the G2B system. In addition, the procedure for payment is completed within hours thanks to automatic transfer of procurement fees to registered accounts.
Value With the entire procurement procedure managed online, only one registration over the Internet enables businesses to search for information and participate in biddings, enhancing the convenience of procurement administration. Also, the real-time procurement processing enhanced transparency of administration and increased reliability of the citizens toward the government's execution of the procurement budget.
(iii) Home Tax Service www. hometax.go. kr
Description In answer to the inconvenience caused by submitting tax forms by post and filing tax returns at the tax offices, the National Tax Service System has been built enabling tax returns, electronic payment, and electronic civil services through an online single window. It is now possible for 105 kinds of tax related
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
civil services such as business registration certification and tax return registration, to be processed online. Information on tax returns and reports can be received through e-mail or SMS. Also, VAT and withholding tax can be paid online. 6 kinds of certifications are now available for review at banks or related government office, no longer requiring paper documents to be issued. Value Taxpayers no longer need to visit tax offices or banks. Instead, they can receive at home online tax-related civil services such as e-report, e-payment, e-notice, and petition, thus improving the convenience of taxpayers. Also, by reducing the chances of taxpayers meeting directly with officials, the transparency of tax administration has been greatly improved. The prevention of redundancy in data-input accelerates the processes as well.
(iv) Social Insurance Service Portal
Description The services concerning 4 major social insurances - health, pension, employment, industrial accident compensation - had been run by separate information systems despite the similarities in their objects, procedure and services. In order to enhance the services for the citizens and efficiently manage the administration, the government has integrated the information of the 4 major social insurances into a centralized electronic civil service window and built a system that can process common duties. As the result, people are now able to use the Internet or visit one of the 4 public insurance corporations in order to register, revise information, or withdraw. The sharing of information among concerned institutions, such as the integrated G4C Net, has reduced the number of documents one has to submit to each institution. The checking and payment of insurance rates can also easily be processed through the Internet.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Value
The same information that had to be separately processed 4 times can now be processed with only one report to one of the 4 insurance corporations. Civil services can be processed more quickly and easily via the Internet and the number of documents and attachments citizens had to fill out and submit has been reduced to greatly enhance convenience. The integration of information of the 4 main social insurances has led to high accuracy and speed, further enhancing efficiency as well.
(v) KIPOnet Service
Description As the global and domestic competition on technologies grew, investments in technological development and patent applications, along with conflicts thus raised began to grow as well. On such account, from 1995 to 1999, the KIPOnet system was established and since its completion in 1999, the application, registration, evaluation and the notifying of the results have been electronized. The services charged before are now available free on the Internet and public notices on open patent information and registration information are automatically extracted for provision through the Internet. Value
Through KIPOnet, the patent application procedure, once manually done and paper-ridden, can now be processed online from registration to evaluation and notification of results. Citizens are now able to apply for patents and keep their eyes on the process and results through the Internet without leaving their home or office. By the year 2001, approximately 240,000 (8 1.4 per cent) out of 290,000 cases of patent application were processed online and the number of online patent information users increased up to 3.3 million. Also, the evaluation period was reduced by 6 months (from 28.1 to 21.3 months), greatly enhancing the efficiency of patent administration.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
(vi) Real Estate Online Registration Service registry. scourt.go.kr
Description Demand for real estate registration administration has increased since the 1990's. In order to meet such demands, the Supreme Court has electronized civil services in 213 registration offices including the viewing of real estate registration copies of 1994 to September 2002. Information has been electronized into e-registers and many services that were manually processed have now been fully automated for nationwide online services.
Value The online viewing service has enabled citizens to view the registration information from their home or office, genuinely opening the age of in-home civil services. Also, nationwide online registration services allow citizens not using the Internet to receive and view necessary information from any office regardless of where they live, greatly contributing to the enhancement of convenience.
(vii) National Education Information System
Description The physical infrastructure of educational informatization has achieved the complete wiring of all schools nationwide by 2000. However, the educational administration system was separately informatized by institution, which caused inefficiency in information exchange and standardization as well as hardships in informatizing educational administration. As the solution to these problems, the Ministry of Education and Human Resources came to build a system that connects all elementary and secondary schools with education offices in local governments through the Internet. Upon completion of a system, all educational administrative services including curriculum development, students' academic record keeping, and student counselling will be processed by the system. Also it provides a better work environment for teachers and officials who manage the administration of national education.
Value Through the standardization and informatization of educational administration, the procedure has been reduced, unburdening teachers of jobs other than teaching, and further enhancing the quality of national education. With accurate data provided on real time, the administration will increase its efficiency. People can now use the Internet to apply for copies of educational certificates anytime and anywhere, or they can visit any education office to receive these services.
(viii) National Finance Information System www.nafis.go.kr
Description Before, the national budget was managed by hand and the overall analy sis was delayed with the lack of consistency in statistics due to the insufficient standardization of national finance administration. The Ministry of Finance and Economy has therefore informatized the entire national finance administration for scientific management of the budget and finance information exchange. From budget planning and its implementation, to accounting and settlement, all the processes regarding national finance are now
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
connected online for real time management and analysis of the national budget with daily income and expenditure of the budget is automatically accounted everyday.
Value Thanks to the real time management of the national budget, the system provides transparency in finance administration together with necessary information required in decision-making processes. Also, cost has been reduced, and productivity enhanced, with the automation and simplification of finance administration.
(ix) Personnel Policy Support System (PPSS) Description The government has integrated seven fields of personnel administration into a single system, building the ground for systematic and reasonable government personnel administration. With this system, paper documents and related data can be managed online.
Value Real time analysis and management of personnel administrative information leads to scientific management of human resources which saves time and expense and enhances the reliability of personnel administration of the government. (X)
Military Manpower Administration Information Service
Description The military manpower administration has been informatized and the whole process of administration has been reformed. Various kinds of administrative documents have been simplified and a 24-hour non-stop service system has been devised for related civil services.
Value The whole process of receiving civil services related to the military manpower administration, from registration to approval, is available on the Internet with much enhanced transparency and convenience.
(xi) Comprehensive Legislative Information Service Description Considering the growing demand for legal information and the need for providing such services, the Ministry of Legislation informatized legislative information including existing and historical laws, amendments, etc., and synthesized all information to create an online legal service system.
Value The reformed legislative information services enhance convenience and improve the level of citizens' legislative knowledge and awareness.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
(xii) National Knowledge Information Service Description The resources in six major national libraries have been digitized and established into one online digital library, where information is available anytime anywhere. Another was established for integrated search and review of 5 areas including science technology, education, arts and sciences, culture, and history.
Value These services have improved the citizens' accessibility to national knowledge and information and narrowed the information divide between regions.
(xiii) Seoul Open Service for Online Civil Administration Description The Seoul Metropolitan Government has informatized 54 kinds of civil services in 10 fields. The whole procedure of civil service processing and information such as the managing department and the officials, procedure, required documents, etc., is open to the public.
Value Once the entire procedure of application processing has gone online and been opened to the public, transparency and accessibility of public administration has been enhanced. This service also strengthens the trust between the people and the government.
(xiv) E-approval and e-document Exchange Description By establishing a real time document exchange system, certifying or tracking service of document delivery is available. In addition, e-approval system and other administrative information system are connected to avoid duplication of data input in the approval process.
Value The document exchange procedure between government offices and departments has become more safe, trustworthy and timesaving. The connection of e-approval system and other information systems also enhances work efficiency of the government. (XV)
E-signature and e-seal
Description For safer information exchange in cyberspace the government issues accredited certificates to people using the e-government or e-commerce services and e-signatures to government officials using official e-approval and e-document exchange systems.
Value The ground for trustworthy e-government and efficient document and information exchange between administrative offices has been achieved by e-signature and e-seal services.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
G. Enhancing ICT inn~vation~~: best practices 1. Developing advanced technology in information and cornrnunications The government has designated 174 core strategic technologies for technology development projects in 2000 in order to gain a technological competitive edge in the world market including the next-generation Internet, optical communications, digital broadcasting, wireless communications, and computer software, among others. Accordingly, Republic of Korea has made more than 1,000 patent applications related to the advancement of core technology in and outside the country. In addition, the government has improved the appraisal system for the selection of research subjects, and has helped to establish effective research management methods for the efficient utilization of R&D funding and maximizing the benefits of R&D. At the same time, the government is concentrating on the development of innovative technology that forms the basis of securing sustained national competitiveness in the future. Private investments are not readily made in this area since short-term commercialization is generally not feasible.
2. Promoting basic research in information and communication The government support R&D activities of small and medium sized venture businesses, to develop information and communications policies, to establish e-libraries, and to construct the next generation Internet platform. The government continuously searches for leading technologies by appraising their technological and commercial merit, and providing marketing and commercial support in order to create demand. In addition, the government has established a Test Support Center for Optical Parts and Systems at the Gwangju Optical Industrial Complex to develop a quality control system for optical communication systems.
3. Development of IMT-2000 and Wireless Internet Technology The government has implemented a technology development plan focussing on WCDMA from 2000 to 200 1. With standardization of post IMT-2000 technology, many countries will be undertaking further technology development in this field, and thus, Republic of Korea needs to prepare a technology development plan for the 4" generation mobile communication, by securing cutting-edge technology for the long-term. Moreover, the government plans to invest a total of 6 billion won for technology development in the wireless Internet industry.
4. Research and development of network equipment for the high-speed information infrastructure The development of network equipment technology for high-speed information infrastructure is divided into the HANIB-ISDN and MPLS projects. The HANIB-ISDN project concerns the development and commercialization of the ATM optical transmission equipment, which is a critical component of the high-speed information network. The government invested 685 billion won during the decade from 1992 to 2001 in these projects. The MPLS is a project that deals with the development and commercialization of Multi Protocol Label Switch (MPLS) technology to obtain Internet functional improvement of the ATM exchange. This project was injected with investments of 225.55 billion won from 1999 to 2001.
69 IT Republic of Korea 2002, Vision for Building a Creative, Knowledge-Based Society, from the publication of the Ministry of Information and Communication, December 2002.
Part Two: Best Practices from the Experiences of More Developed Countries (India, Malaysia and Republic of Korea)
5. Promoting standardization in information and communications In order to provide a favourable environment for information and communication usage a:nd to encourage the IT industry to advance into the world market, the Republic of Korean governmer t has developed and disseminated information and communication standardization criteria. In addition, to improve the testing and certification systems in the telecommunications sector, the government has improved the operations that regulate technical standards in such a way as to meet the rapid development of IT and the changes in the competitive structures of telecommunication market. For this reason the government revised the regulations of the Technical Standards for Telecommunication Facilities in August 2001. Moreover, the government is making improvements to the certification system for telecommunications equipment and promoting mutual recognition between nations, in order to overcome the technical barriers to trade.
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PART THREE ICT POLICY TRAINING MODULE
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Part Three: ICT Policy Training Module
MODULE l: INTRODUCTION AND OVERVIEW OF THE CRITICAL ASPECTS OF ICT POLICY AND REGULATORY FRAMEWORK DESIGN The workshop started with an introduction and brief overview of the ESCAP project on "Enabling Policies and Regulatory Frameworks for ICT Development in the Asia-Pacific Region". The project goals and objectives, including the various activities of the project - the survey questionnaire, study visits to three countries, the expert group meeting, and then culminating with the training workshop - were briefly explained to the workshop attendees to give them an understanding of how the training workshop came to fruition. An overview of the critical aspects of ICT policy and regulatory framework design was then presented. The critical aspects were on National ICT policies, ICT Infrastructure, Universal Access, Human Resources Development, and the actual ICT policy environment related to e-commerce, enhancing the ICT industry, ICT innovation and e-government. Suggested priority programmes on e-government, e-learning, e-health, local content generation and community centres or kiosks were enumerated. Certain technology trends such as mobile internet, VoIP and open source software could also be considered in ICT policy formulation. The workshop discussed the need for the creation of favourable policy and regulatory frameworks conducive to the adoption and diffusion of ICT, and to promote the awareness among government policy makers of the need for action to develop systematic, comprehensive and articulated ICT policy and regulatory frameworks. Participating countries recognized the importance of improving the climate and institutional mechanisms for the enactment of ICT policy and regulatory frameworks.
Critical Aspects of ICT Policy and Regulatory Framework Design
Part Three: ICT Policy Training Module
Despite the wide range of benefits that can be brought about by ICT, the development and adoption of ICT by developing countries have so far been limited. Reasons for this have been amply documented. They include: W W
W M M M
M W
M H W W
Lack of awareness of what ICT could offer Insufficient telecornrnunications infrastructure and Internet connectivity Expensive Internet access Low income levels Absence of adequate legal and regulatory frameworks Shortage of requisite human capacity Low literacy rates Failure to use local language and content Lack of entrepreneurship and a business culture open to change Transparency and democracy Lack of payment systems that can support online transactions Cultural resistance to online trade
Expected Benefits Promote awareness among government policy makers of the need for action to develop systematic, comprehensive and articulated ICT policy and regulatory frameworks Focus attention on where technical assistance is needed most Identify regional best practices on ICT policy development Encourage participating countries to improve the climate and institutional mechanisms for the enactment of ICT policy and regulatory frameworks Highlight priority areas that apply across nations
Policy Components ICT Infrastructure
E-Finance
Access for All
Enhancing ICT Innovation
Human Resources Development
Multilateral Cooperation
E-Legal Environment
Government Projects
E-Business
Priority Programmes
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
National ICT Policies History of ICT Policy Formulation What needs were you trying to address? What are your main policy components? Framework? What was your ICT policy based on? Did you try to synergize these policies and make efforts to make these policies consistent with global and regional ICT policy initiatives? Do you have policies specifically to help in developing ICT Industries? Do you have policies tackling convergence issues? Who is the primary government ICT body? What is its organizational structure? How does it coordinate with other government agencies? How do you ensure coordination between different government agencies? Do you have an identified Government CIO? What are hislher roles and responsibilities? Who does the government C10 report to?
National ICT Policies Does private sector play a role in policy formulation? How active are they in policy development? Decision-making process for ICT policies, consultative, who are involved? What is your e-government strategy? Your strategic ICT planning methodology? Who monitors the implementation of your ICT plan? What are your means for evaluating national ICT policies? What indicators or metrics do you use to track your ICT development? What policies have worked smoothly? Which policies are more challenging in terms of implementation, monitoring and regulation? Are there any shortcomings in your current ICT policy? Actions to correct/improve on them?
ICT Infrastructure Is your telecommunications industry deregulated? Fully privatized? How many telcos, ISPs do you have? What is your strategy for ICT infrastructure development? Status of National and Regional Internet Exchange Points Regulatory initiatives to enhance network competition, both locally and from foreign suppliers and vendors Strategies to reducing costs of connectivity to the whole population Wireless Communications and Spectrum Licensing Issues Financing Issues Do you have a policy identifying critical information infrastructure and if yes, how do you protect these infrastructure?
Part Three: ICT Policy Training Module
Access for All 0
0 0
a a 0
How successful have governments and telecommunication service providers been in ensuring universal access to ICT and the Internet in the region? What are effective strategies to address the urban-rural and gender digital divides? Access in schools? Access in other public institutions? Access in rural communities? Do you have a Universal access programme? If yes, could you please give more details. Do you have any models for sustainability and success of rural communications? What is the role of the government and the private sector in the above initiatives, if any? Which implementation model works best: through local government, schools, local cooperatives, private telcos, or through ISPs?
Human Resources Development What is your strategy for ICT human resources development? B
Do you have programmes on: Training through the Public Education System Training in Higher Education Vocational and Specialized Training Training to Government Employees Training for SMEs and Micro-enterprises Training in Rural Areas Training by the Private Sector to Employees and Clients
E-Legal Environment What has been your experience of in terms of adapting your legal environments to the demands posed by the digital economy? To what extent have they succeeded in meeting the demands by businesses, consumers and your citizenry? Do your ICT policies cover the following: UNCITRAL Model Law on E-Commerce Convergence between telecommunications, ISPs, broadcasting, media Spectrum Licensing
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
E-Legal Environment E-transactions (PKI, trust mark systems) E-business contracts E-signatures Freedom of Expression Privacy Security Consumer Protection and the Public Good Cybercrimes Dispute Resolution Management of Internet Addresses and Domain Names Transparency Issues Monitoring, Regulatory and Enforcement
How do you encourage ICT businesses to flourish? policies and efforts on:
Do you have
Incentives for Businesses, Encouraging Private Sector Investment Promoting Fair Competition Enhancing Entrepreneurship Trade Policies Taxation Building Trust and Confidence E-payment Schemes Financing Schemes for Rural Connectivity, Entrepreneurship, SMEs and micro-enterprises
Enhancing ICT Innovation Do you have policies to encourage ICT innovation to flourish? Do you have policies and efforts on: Technology Transfer Mechanisms Local R&D Efforts for Indigenization of Technologies Role of SMEs and the government Intellectual Property Rights Issues Use of Open Standards and Open Source Software
Part Three: ICT Policy Training Module
Multilateral Cooperation How do you ensure coordination between different government agencies? How do you encourage partnerships between government, industry, private sector, academe, NGOs, civil society for ICT development? Do you have any regional and international partnerships for ICT development?
What are your primary government ICT projects? Do you have projects on: Government services online Governments as model users of ICT Government E-procurement System
Priority Programmes Do you have efforts on the following: E-business E-learning Local Content Generation Protection of Cultural and Linguistic Diversity Digital Library Knowledge Management E-health Community Information and Communication Centres, Mu ltipurpose Community Telecentres
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
ICT Trends
l
Do you have efforts on the following: Overview of Open Standards Free and Open Source Software Web Services Mobile Access Improving Internet Access Efficiency ICT Services E-tourism Do you have a stand or policy regarding voice over Internet Protocol (VoIP)? Is it a viable solution for rural connectivity, for example? Mobile phones versus computers? Is this an issue? Is this hindering the growth of IP, affecting e-commerce strategies?
Objectives of the Training Workshop To promote awareness among government policy makers of the need to develop systematic, comprehensive and articulated ICT policies and regulatory frameworks To provide an overview of the different ICT policy components
Training Workshop Format Introductory Presentations Country presentations National ICT Plan H E-Government Plan and Priority Projects - Volunteers Needed H
Class discussions Workshop SWOT and Gap Analysis of your National ICT Plan H Human Resources Development Strategies Individual action plans
Part Three: ICT Policy Training Module
Thank you! Jay Sabido
Consultant for Information, Communication and Space Technology Division, ESCAP jay
[email protected]
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
MODULE 2: OVERVIEW OF ICT FOR ECONOMIC AND SOCIAL DEVELOPMENT Information and Communication Technology or ICT is so much a part of most of our daily lives. From the electronic gadgets around us such as mobile phones, computers, PDAs, to the infrastructure that allows us to access information quicker. ICT is a broad field that includes computers, software, communications and services. It is characterized as the convergence of digital data processing and communications. This data can be pictures, video, audio and actual data; and the ability to'store, process, manipulate and combine these digital data is the beauty of ICT. The Internet is a complex network of networks, a global set of connections of computers that enables the exchange of data, news and opinion. Its growth has been phenomenal, with its diffusion much, much faster than other previous technologies such as the telephone, radio, personal computer and television. The value of the Internet lies is the number of users connected to it. The ICT sector can be segmented into hardware industries, software and other services, cornmunications equipment and communications services. ICT has tremendous implications to a country's national development and various aspects of its development, such as industrialization, economic, social, political, technological development. ICT boosts economic growth by increasing productivity due to increasing returns from ICT use, spillovers from network economies, availability of timely information to manage complex production chains, more efficient distribution systems, effective management of risks, lower search and transactions costs, and enabling its people to exchange and access more information around the world. One must remember though that ICT is and should not be an end in itself. It is a tool. It is an important tool to empower people and communities to become self-sufficient in meeting their basic needs. ICTs empower individuals, businesses and especially SMEs, local and community groups, women and marginalized or disenfranchised people or groups to do what they do, only better. With ICTs and the capacity to use ICTs, these groups can access the same information that government and large corporations use. Access to information can contribute to leveling the playing field by increasing participation in economic and human development activities and in those to the economy and wider society. A government's enactment of meaningful policies, legal and regulatory frameworks, as well as supporting economic and fiscal measures, are very important facilitators for accelerating the demand for ICTs and their development and diffusion.
Part Three: ICT Policy Training Module
Session 2: Overview of ICT for Economic and Social Development
What is ICT? Information and Communications Technology A broad field that includes H
Computers
H
Software
H
Communications
H
Services
Convergence of digital processing and communications
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Short History 1875 - Invention of the telephone 1910s - AM radio broadcast 1940s - TV broadcasting, wireless communications 1943 - First electronic computer 1970s - Invention of the microprocessor, fiber-optics 1980s - Cellular communications 1990s - Internet
Multimedia Made possible by digital technology Can store, process, manipulate and combine digital data Data can be: m
Pictures
m
Videos
m
Audio Actual data
Internet W
A network of networks
W
A global set of connections of computers that enables the exchange of data, news and opinion
W
A platform for:
*
m
New ways of doing business
1
Better way for governments to deliver public services
W
Enabler for lifelong learning
The Information Age, e-primers for the Information Economy, Society and Polity. By Emmanuel C. Lallana and M. Uy.
Part Three: ICT Policy Training Module
Explosive Growth of the Internet Number of years to reach 50 million users: 1 Radio
-
38 years
Television
-
13 years
PC
-
16 years
1 Internet
-
4 years
H
But less than 10 per cent of the global population is online
Storage Media The surface area of the disks has shrunk by a factor of almost 800, while their information capacity has increased 24,000 times
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Moore's Law
Other Laws of the Internet Metcalfe's Law: H
CO-inventor of the Ethernet He observed that a network's value grows proportionately with the number of users
Internet time H
Refers to speed of development due to the Internet
What is E-Commerce? The ICT revolution has transformed not only how (and where) goods are produced but also how commodities are exchanged. E-commerce is buying and selling over the Internet or any transaction concluded through an information network involving the transfer of ownership or rights to use goods or services. More precisely, it includes all business transactions that use electronic communications and digital information processing technology to create, transform and redefine relationships for value creation between organizations, and between organizations and individuals.
*
The Information Age, e-primers for the Information Economy, Society and Polity. By Ernrnanuel C. Lallana and M. Uy.
Part Three: ICT Policy Training Module
Types of E-Commerce H
Business-to-business (B2B)
H
Business-to-consumer (B2C) Business-to-government (B2G) Consumer-to-consumer (C2C) and
H
Mobile commerce (m-commerce)
In the late 1990s, over reacting to perceived benefits of the new economy, markets pushed up the value of ICT and e-commerce companies. After April 2000, the values of these companies began falling and many high profile bankruptcies occurred. Although this has created major short-term restructuring costs, the share market collapse is likely to have limited long-term effects on new technologies' economic and productivity gains.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
The Dotcom Bust Cl Too much hype
o Over-investment Excess capacity
R Incorrect business models or lack of a clear cut business plan R But ...
R E-government and ICT in general, continue to be relevant
Main Segments of the ICT Sector Hardware industries Communications equipment production Software and other services industries Communication services industries
ICT Hardware Industries ICT hardware industries, including production of computers and equipment, magnetic and optical recording media, electron tubes, printed circuit boards, semiconductors, passive electronic components, industrial instruments for measurement, instruments for measuring electricity, laboratory analytical instruments and calculating and office machines, as well as wholesale and retail trade in computers and equipment.
Part Three: ICT Policy Training Module
Communications Equipment Communications equipment production, including production of household audio and video equipment, telephone and telegraph equipment, and radio and TV communications equipment.
Software and Other Services Industries Software and other services industries, including software development and engineering, pre-packaged software, wholesale and retail software trade, computerintegrated system design, computer processing, data preparation, information retrieval services, computer services management, computer sales, rental and leasing, computer maintenance and repair and other computer related services.
Communication Services Communication services industries including networks and security, system administration and support, database development and administration, user support and help desk, graphics and multimedia, instruction and training, hardware engineering, smart cards, telephone and telegraph communications.
Part Three: ICT Policy Training Module
ICT is not an end in itself It is a tool to empower people and communities to
H
B
Become self-sufficient in meeting their basic needs
B
Help people reach their full potential
Access to information - critical for change and empowerment
Advantage of ICT Access to information for private and professional decision-making: ICTs expand the range of choices and opportunities by facilitating greater access to economic, educational and development related information H
Geography and distance become less of a consideration with ICTs. Research is much easier with ICTs and the Internet especially
Access to opportunities: ICTs empower individuals, businesses and especially SMEs, local and community groups, women and marginalized or disenfranchised people or groups to do what they do, only better. With ICTs and the capacity to use ICTs, these groups can access the same information that government and large corporations use. Access to information can contribute to leveling the playing field by increasing participation in economic and human development activities and in those applications that depend on information such as markets
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Greater ability to learn: distance learning Greater environmental awareness: information about the weather and the environment in general is more readily available. This information can help to predict and prepare or environmental perturbations and catastrophes
More awareness of factors affecting individual well being Greater ability to influence and participate in decisionmaking Transaction processing: ICTs speed up and ease transactions of all types, and are especially important for business and government transactions
B
Trade: ICTs enhance and facilitate trade. ICTs make markets more efficient. Commerce is enabled and extended. All markets have the potential of being international or of being selective, depending on the case
Part Three: ICT Policy Training Module
Emergence of New Activities Online outsourcing of services H
Production of different types of ICT goods
These activities enable countries, including developing ones, to diversify their economies, enhance their export competitiveness and produce high-value-added services that boost the local economy.
Impact on Firms and Industries Increased information flows, which result in knowledge transfer as well as improved organization H
In particular, ICT have become important tools for improving productive capacity and increasing international competitiveness by: Reducing the transaction costs involved in the production and exchange of goods and services Increasing the efficiency of management functions and Enabling firms to exchange and access more information
ICT cannot substitute for human intervention, for example, in the creation of business relationships
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Class Discussion Country Presentations What do you see is the role of ICT in your National Development? What needs can ICT address? Is there a positive correlation between ICT adoption and country growth? Please provide examples Lessons learned from ICT adoption: what ICT can and cannot do?
Thank you! Jay Sabido
Consultant for Information, Communication and Space Technology Division, ESCAP
[email protected]
Part Three: ICT Policy Training Module
MODULE 3: NEW CHALLENGES This part of the workshop introduced the participants to the issues surrounding international policymaking, especially the experiences and challenges facing most developing countries. The discussion for this session was based on the document: "A Roadmap. Global Policy making for ICT", Implementation Team on Global Policy Participation, G8 Digital Opportunity Task Force, June 2002. The increasingly important role of ICTs in the broader process of globalization means that countries that do not tap into these technologies risk being left even farther behind. While domestic policy can help developing countries seize the advantages of ICTs, decisions made at the global level will increasingly affect these nations' ability to benefit from ICTs. There is thus a need to ensure that international policy-making is inclusive; i. e ., includes all countries and entities. The arena of international ICT decision-making is populated by a rapidly expanding number of policy-making institutions, processes and venues: Some are long established. Others are newly invented, or newly involved in ICT decision-making. Some are primarily focused on the development of ICT technologies, products or services. Others are mainly concerned with access to and the use of ICTs for economic, social or cultural development. Some ICT decision-making venues restrict participation to government representatives. Some are purely private ventures, and others are mixed, open to participation by government, the private sector and civil society. The three general categories of organizations in international policy-making are: A small number of principal institutions that currently have leading roles in international ICT decision-making. These are the WTO, ITU and ICANN; A slightly larger number of supporting fora drawn from the ranks of the UN family and international financial institutions; and
A diverse group of newcomers to the international ICT policy scene representing the interests of the private sector and civil society. Developing countries face the following challenges: The limited bargaining power and leverage of developing countries in comparison with other countries and regional blocs; The absence of coherent, consistent positions by developing countries on major global ICT issues in advance of their explicit emergence; The lack of experience and capacity in the global ICT policy area, and the "brain-drain" of many of the most qualified; and The absence of effective cooperation among developing countries on how to engage in collective negotiation on global policy issues for their mutual benefit. These challenges could be addressed by making sure that international organizations have procedural equity practices in overall membership, committee leadership roles, voting procedures, and other formal arrangements to safeguard the influence of developing countries. Technical assistance and mentoring programmes could also be provided by these international organizations and more developed countries. In addition, empowering regional entities to help set agendas, implement programmes and act as conduits of ideas and information, go a long way for a lot of developing countries.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Session 3: New Challenges
3.
New Challenges International Policy Environment Globalization WTO General Agreement on Trade in Services (CATS) Agreement on Basic Telecommunications (ABT) WIPO WSIS ICANN Importance of Intellectual Property Rights Impact of Multinationals Changes on Employment Methods and Job Structure Mobile workforce Migration Outsourcing Importance on the competitiveness of the public sector Importance of International Cooperation Impact of Global Issues on National Policy-Making
Based on "A Roadmap. Global Policy-making for ICT", Implementation Team on Global Policy Participation, G8 Digital Opportunity Task Force, June 2002
Part Three: ICT Policy Training Module
W
Need for Inclusive Global Policy-Making The increasingly important role of ICTs in the broader process of globalization means that countries that do not tap into these technologies risk being left even farther behind. While domestic policy can help developing countries seize the advantages of ICTs, decisions made at the global level will increasingly affect these nations' ability to benefit from ICTs
R
The World Trade Organization and the International Telecommunications Union, are regularly addressing new issues, and a number of new policy institutions dedicated to ICTs have sprung up in recent years, ranging from the World Wide Web Consortium (W3C) to the Global Business Dialogue (GBDe)
Global ICT Policy Issues The international ICT decision-making universe is vast and expanding rapidly as a result of the boom in ICT application and penetration that has taken place in recent years W
This universe is highly differentiated in its institutional features and complex in its decision-making structures, and contains several black holes into which issues sometimes disappear from the view of the international communities
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Global ICT Policy Venues The arena of international ICT decision-making is populated by a rapidly expanding number of policy-making institutions, processes and venues: m m m m m
Some are long established. Others are newly invented, or newly involved in ICT decision-making Some are primarily focused on the development of ICT technologies, products or services Others are mainly concerned with access to and the use of ICTs for economic, social or cultural development Some ICT decision-making venues restrict participation to government representatives Some are purely private ventures, and others are mixed, open to participation by government, the private sector and civil society
Three General Categories in Global ICT Policy-making rn A small number of principal institutions that currently have leading roles in international ICT decision-making W
A slightly larger number of supporting fora drawn from the ranks of the UN family and international financial institutions and
W
A diverse group of newcomers to the international ICT policy scene representing the interests of the private sector and civil society
Three Main Institutions W
ITU WTO
W
ICANN
Part Three: ICT Policy Training Module
ITU The ITU traces its origins back to 1865, has 190 Member States and some 650 non-governmental in terms both of issues addressed and types of decisions made: W
rn
The ITU treaties provide an international legal framework for cooperation between governments, the private sector, and other actors. They also lay down the legal and regulatory principles that govern the international exchange of telecom services, as well as the allocation and use of radio frequencies and satellite orbital positions. Within this framework, the ITU's main responsibilities include coordination and registry of frequency and orbital assignments and telecom numbering plans, development of technical, operational, tariff and revenue-sharing standards, the provision of policy, regulatory, technical and capacity-building assistance to developing countries, and fora for coordinating national approaches to global telecommunications policy and regulatory issues.
WTO The WTO, established in 1994 as the successor to the General Agreement on Tariffs and Trade (GATT), has 144 Member Countries. In the past decade, the WTO has played an increasingly important role in international ICT decision-making as a result of the 1994 General Agreement on Trade in Services (GATS), the 1997 Fourth Protocol to GATS on trade in basic telecommunication services, and the l998 and 200 1 Ministerial Declarations on Electronic Commerce.
The principles embodied in the GATS treaty provide a new legal framework for governing the exchange of ICT services between countries. This framework is designed to facilitate foreign access to domestic ICT markets and is based on trade principles such as transparency and non-discrimination. The WTO and GATS treaties provide a legally binding mechanism for resolving disputes between countries, including disputes that might arise over ICT services, products or investments. No such mechanism existed previously. Currently, 84 countries, including many developing countries, have made commitments to open their domestic markets to foreign investment in andlor foreign supply of basic and value-added telecommunication services. In addition, a substantial majority of these countries have made commitments to apply a common set of principles for pro-competitive regulation of telecommunications in their jurisdictions.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
WTO on IPR Better protection needed to share the benefits of R&D Currently, extremely costly especially for smaller companies and countries Need to ensure IPR respected both ways
ICANN The Internet Corporation for Assigned Names and Numbers (ICANN) is a notfor-profit, private sector organization, incorporated in the state of California. It was established in 1998 by the United States government with a coalition of Internet business, technical, academic and user communities as a forum for coordinating the technical management of the Internet domain name system, a task previously undertaken through various voluntary, ad hoc and United States governrnentfunded arrangements. ICANN aims to accomplish its objective through an open process that builds consensus among members of the Internet community on an international basis. The ICANN structure currently includes supporting organizations that coordinate the allocation of the numerical addresses used to identify individual computers connected to the Internet and the domain name system that translates these numerical addresses into more user-friendly ordinary language. Governments are only involved in ICANN's work through an international Government Advisory Committee (GAC), which provides advice to the ICANN Board of Directors. As an example of industry "self-governance", ICANN is generally seen as an experiment in international ICT decision-making.
Some Supporting Institutions World Bank Group (WBG) 0
World Intellectual Property Organization (WIPO)
H
UNESCO
H
UNCTAD
H
ESCAP
II
Etc ...
Part Three: ICT Policy Training Module
World Bank Group The World Bank Group (WBG) has 183 Member Countries, and an important influence on ICT development in a number of ways. The five financial institutions that make up the WBG provide loans, equity capital, investment guarantees and development assistance to governments, private investors and foreign investors in developing countries. The WBG has used these tools to encourage market-oriented policy and regulatory reforms, particularly in the telecommunications sector, and has provided an extensive programme of research, training and technical assistance in these areas. In recent years, the WBG has broadened its focus to address the role that ICTs can play in reducing poverty and creating the conditions for sustainable development, by facilitating access to knowledge (e.g., the Global Knowledge Partnership and the Development Gateway).
WIPO The World Intellectual Property Organization (WIPO) has 177 Member Countries and helps to protect intellectual property rights (IPRs) in ICT technologies, products, software, applications and services, as well as to resolve disputes about these rights. In something of a departure from its "self-regulatory" tradition, the Internet community uses WIPO to resolve disputes about the ownership of some Internet domain names. The international protection for IPRs traditionally provided by WIPO has been enhanced by the provisions of the 1994 WTO agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and by a formal cooperation agreement between the two organizations.
UNESCO D
The United Nations Educational, Scientific and Cultural Organization (UNESCO) supports the development of ICT-based content services (e.g., broadcasting) in developing countries and has championed the adoption of content-oriented perspectives in international ICT decision-making
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
New Fora and Players They have had a steadily increasing influence, and a number of initiatives have been launched to engage them informally in international ICT decision-making: Non-governmental organizations (NGOs), some of which are primarily concerned with promoting the development of ICT-based networks and services in developing countries particularly via the Internet and community-based initiatives - others of which are focused on the use of ICTs to promote sustainable economic, social, cultural and political development Business community organizations (BCOs), including national chambers of commerce whose main interest is in promoting policies, regulations and practices that encourage trade and investment between countries, as well as task forces and roundtables that address emerging global issues of policy, regulation and development from a private sector perspective Hundreds of private sector fora (PSFs) that have been established by ICT enterprises to develop international standards for ICT technology, networks and services
Global ICT Policy Themes Convergence and Digitalization Networked Economy Global Information Society
Part Three: ICT Policy Training Module
Challenges of Developing Countries in International ICT Decision-making W W
rn W
The limited bargaining power and leverage of developing countries in comparison with other countries and regional blocs The absence of coherent, consistent positions by developing countries on major global ICT issues in advance of their explicit emergence The lack of experience and capacity in the global ICT policy area, and the "braindrain" of many of the most qualified and The absence of effective cooperation among developing countries on how to engage in collective negotiation on global policy issues for their mutual benefit
Broadening and Enhancing the Capacity of Developing Countries to Eflectively Participate in the Global ICT Policy Forums and the ICT for Development (ICTpev) Process. A Concept Paper for the Markle Foundation. By Clement Dzidonu and Nii Narku Quaynor. International Institute for InformationTechnology (INIIT), Ghana, Special Working Paper Series No. 5, March 2002.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Challenges in International Decision-making A lack of awareness - most significant barrier
Role that ICTs can play in supporting economic and social development Importance of international ICT decisions on national policies and regulations H
How ICT can make a difference to the lives of individuals, families, communities
Challenges in International Decision-making Lack of easy and affordable access to timely information H
The rapid increase in both the range of issues on the international ICT policy agenda and the number of organizations involved in ICT policy-making has made it increasingly difficult even for developed countries to keep track of what is going on, anticipate key events, and plan strategies for successful outcomes
H
High cost of internet access and paper-based publications
Challenges in International Decision-making A lack of technical and policy capacity on ICT issues H
Capacity-building necessary
H
Human resources development
Good Practices in Information and Communication Technolonv Policies in Asia and the Pacific
Solutions and Best Practices Technical Assistance Building substantive domestic communities within developing countries that can address technical issues over the long-term H
Mentoring programmes
Solutions and Best Practices Use of Regional Committees to enhance participation of developing countries By empowering regional entities to help set agendas, implement programmes and generally serve as a conduit of ideas and information Developing countries also find it less costly and more comfortable to make their views heard in a local setting
Solutions and Best Practices Internal Capacity Building H
Enhance developing country delegations
H
Importance of domestic expertise and coalitions in creating effective participation, and more international fora
H
Developing governments are creating stronger knowledge and political bases from which to negotiate
Part Three: ICT Policy Training Module
Solutions and Best Practices Involvement of NGOs in Implementing Programmes International organizations work in formal partnership W ith NGOs who share their mission, creating another source of aid and advice to empower developing countries. W
NGOs participate vitally in strengthening developing nations in the international policy system. They contribute valuable information and ideas, advocate effectively for positive change, provide essential operational capacity in emergencies and development efforts, and generally increase the accountability and legitimacy of the global governance process.
Other Issues M
Impact of Multinationals Push standards but also possibly based on their own proprietary solutions
rn
Global presence, influence, and experience
rn
Funding
Other Issues Changes on Employment Methods and Job Structure Mobile Workforce Migration Outsourcing
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Class Discussion Country Presentations What other challenges have you encountered in Global Policy-making participation? What are the possible solutions to these issues and challenges?
Thank you! Jay Sabido
Consultant for Information, Communication and Space Technology Division, ESCAP jayix@stanfordalumni .org
Part Three: ICT Policv Training Module
MODULE 4: POLICY FORMULATION In the session on ICT policy development and implementation, the ESCAP Regional Advisor on ICT Policies and Strategies provided the basic framework for policy and strategy development and implementation. She touched upon the different roles of government as regulators, enablers and users of ICT and the implications this has for policy formulation and implementation. The lecture than continued to focus on the need for in-depth e-readiness assessments as a starting point of the policy process, the use of global and regional indicators to benchmark a country against other countries and the analysis of the findings of the e-readiness assessment using SWOT. She stressed the imperfection of policies and the evolutionary process that policy development and implementation goes through. She further emphasized that therefore continuous monitoring and evaluation are important elements of policy implementation as they are the tools that make improvement possible. Additionally the Regional Advisor introduced the DO1 dynamics of ICT development and the UNCTAD Policy Model Framework as two example policy models. The DO1 has a holistic approach towards policy development, dividing it into six strategic areas and their inter-linkages; Strategic Compact, Policy, Content & Applications, Enterprise, Infrastructure and Human Capacity. The UNCTAD Model has a two tier approach to ICT policy development: ICT in the public domain (the Information Society) and ICT in the private domain (Information Economy). This model focuses less on the relationships between policy elements but instead zooms in on the policies that need to be in place to deliver the Information SocietylEconomy. The Regional Advisor introduced a variety of trends in ICT and their impact on policies and strategies. She noted specifically the continuous process of converging technologies and applications, the increased integration of technologies into people's daily lives, the increasing need for data protection and security and the increased role of such global organizations as WTO. Breakout groups involving the participants were established to consider the following points: Rigid patenting and other IPR regulations is an important obstacle for SMEs in developing countries to invest in and capitalize their innovations. Rural telecommunications centres are the best method to deliver rural access and e-services but they need to run commercially. All delegates agreed with the first part but had reservations on the second part; commercially in the end yes; but possible with long-term financial and other support. As ICT is a cross cutting issue, there is no need for a separate ICT agency. ICT policies can simply be implemented through the existing ministries in Educations, Trade and Infrastructure and so on. All delegates disagreed with this statement.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
ICT Policies and Strategies Development and Implementation Margreet van Doodewaard Regional Advisor ICT Policies and Strategies ESCAP ESCAPIITU ICT Policy Training Module
Introduction This session provides the basic lay out of the policy scene as a basis for the days to come: 0
Definitions
0
Steps in policy formulation and implementation
0
Role of stakeholders
0
Measuring progress
0
Resource mobilization
Definitions Policy = short to the point document that provides the governments' mission and vision in a particular area (long-term). Strategy (Master plan, Action plan) = the translation of the policy into a framework of related programmes (medium-term). Programme = a set of projects that together cover one particular area or key objective (medium-term). Project = a time bound set of activities that lead to the establishment of a particular goal (short-term).
Part Three: ICT Policv Training Module
What is ICT? Information Communication Technology A tool
Includes 'old' and 'new' technologies Rapidly changing and converging Technology of the "young" Affects all sectors and layers in society Globalizer
What makes ICT policy different? Life cycle of a new technology shorter than the life cycle of an ICT policy Policy
=
technology neutral
ICT is a tool Policy objectives
=
non-ICT
ICT is cross cutting Policy integrates all sectors ICT is participatory
+
Policy developed in participatory way
Role of Government Regulator
- ICT Law - Telecoms Law - E-Commerce Law - Media Law
Enabler - National policies and strategies User - Procurement activities - Reaping the benefits
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
The Policy Process International Policies E.g., WTO, international treaties and agreements
4
l
I
I
I
Existing National Policies E.g., PRSP E-Readiness Assessment
I
I
1
I
Existing ICT policies ICT Policy Vision, mission, principles, objectives
Continuous monitoring and evaluation
Actions consistent objectives 1 and timeframes I with
I
National action pladstrategy Situational analysis, Prioritised objectives, key actions, timelines and resources I I I
:
I
Programme Project plan
I
Project plan
Project plan
I
ituational analysis Objectives Actions Who is doing what? Reporting duties
Budget Planning Risk assessment What if scenarios Exit strategy
I I I I I I I I I I I I I I I
E-Readiness Assessments The measurement of how ready a country is to the achieve the objectives it has laid out in its' ICT policy.
I
@why?
DI
1 I
To gain insight into the country's strengths, weaknesses, opportunities and threats. To establish the starting point for future measurement of progress. Many different methods. Chose method that will best produce the information you need. Chose method compatible with international methods.
I
Part Three: ICT Policv Training Module
E-Readiness Assessments: Steps Define "E-readiness" for your country Choose a benchmark country Select e-readiness model: - That provides insights needed - That is compatible with international indicators - That can be used in the Vietnamese setting Apply the model - Use external researchers if in-country expertise not available Advantage: Neutral outlook Disadvantage: May not understand the local setting fully. Expensive Use the outcomes for policy, programme and project development or adjustment Use the outcomes to further develop progress indicators
-
Readiness for the Networked World An e-readiness assessment guide developed by Centre for International Development (Harvard University) Based on the principle that a networked world (1) creates opportunities, (2) eliminates barriers and (3)promotes efJiciency Identifies four stages of readiness with the fourth stage being most advanced Note: e-readiness needs internal or external benchmarking Note: e-readiness is only a snapshot of today
Readiness for the Networked World Uses five categories: Network Access - Availability, Cost and Quality of ICT networks, equipment and services Networked Learning - Integration of ICT in general and professional education Networked Society - The ability of individuals to access and use ICT Networked Economy - The usage of ICT as a communication tool by businesses and government Networked Policy - Facilitation of policies
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
DAI Index :ight : 0.5
WC 0.5
+
Weight: iteracy)
'eight: 1
Source: www .itu.org.
DAI Index for Selected Countries Country Azerbai jan
Bangladesh
Infrastructure
Affordability
0.15
1
0
Knowledge 0.88
Quality
Usage
0.12
0.04
DAI 0.24
0.01
Bhutan China India Kazakhstan Malaysia Nepal
1 1 1
0.14 0.35 0.01
Philippines Sri Lanka Thailand Viet Nam
Networked Readiness Index Figure 1. The Networked Readiness Index Framework Index
Component indexes
Subindexes
1--i
Market Environment . - .. - -
l
Environment
Networked
Readiness
\ \
Source: INSEAD
\ \
- -
Infrastructure Environment
I
Individual Readiness
4
Government Readiness
0 -1
I
1
Business Readiness
Usage
I
Political and Regulatory Environment
7
-
\
- -Constituent relationship.
A 4
Individual Usage Business Usage Government Usage
I
Part Three: ICT Policy Training Module
Networked Readiness Index for Selected Countries
Total participating countries: 102.
SWOT Strengths
Weaknesses
What do we do better than our neighbours?
What do we do worse than our neighbours?
What do we have that others do not have?
What do we not have that others do have?
What are our comparative advantages?
What are our comparative disadvantages?
What national and international trends may be beneficial to us?
What national and international trends may be harmful to us?
Opportunities
Threats
ICT enabling strengths Ecorzonly focus ~nfrastructure Affordable access High literacy rates English High quality technical and managerial education Pro active (ICT) private sector Government enabling with transparent, facilitating and fair policies Stable political, social and economic environment Well developed R&D and innovation (patents) Ample financial resources Low labour costs
Society focus Infrastructure Affordable and easy access Awareness Strong support from local communities (champions!) Local content and applications Political, social and economic stability Purchasing Power Government facilitating and incorporating society information needs
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
ICT inhibiting weaknesses Economy focus
Society focus
Lack of broadband access Access costs high Lack of market Lack of business skill and experience Political, social andlor economic environment unstable Government regulating rather than facilitating Lack of access to investment capital Low overall, managerial and technically specific education levels High labour costs
Lack of government priority and support Poor infrastructure Lack of Awareness Lack of local support Political, social andlor economic instability Lack of local content and applications Lack of local purchasing power
Trends in ICT and Policy Implications Trend Increase in affordable broadband Convergence of DTV and ICT Mobile/Wireless - convergence of ICT and telecoms Traditional media (TV, radio, paper) continue to be strong Policy Implications Policies should encourage broadband application and liberalize broadband market Wireless infrastructure offers access opportunities for remote areas New infrastructure and implications should anticipate convergence of technologies Policies should include traditional media Traditional media can play an important role in awareness raising campaigns
Trends in ICT Trends Level of Internet usage depends on access, age, education, gender, and income (e-living project Europe). Typical early adopters are male, single, educated and young. Women, the elderly, families and groups with little education lag behind Increased overall reliance on new technologies and applications Policy Implications Start ICT penetration in education and young generation 'hang-outs'. The young are the ICT generation of tomorrow Special access and awareness programmes for women, families, the elderly and low income groups Local content and applications should specifically focus on the groups that lag behind
Part Three: ICT Policy Training Module
Trends in ICT Trends Demand for data security increases Increase in use of Free and Open Software as a platform Non-ICT Companies integrate systems further and further; focus on e-commerce Reduction in demand and costs for ICT staff ICT and media industry maturing; inclination to cost-reduction and economies of scale Policy Implications Regulatory framework and enforcement on data security, IPRs, cyber-crime crucial Policies should encourage interoperability of systems Anti-monopolist policies Government protection of incubators and SMEs (within framework of international agreements) against early take-overs
Trends in ICT Trends Increased English language capacity Reduction in demand and costs for IT staff ICT and media industry maturing; inclination to cost-reduction and economies of scale rather than innovation and incubation ICT Industry: shift from product orientation to service orientation Policy Implications Advantage of low cost labour should be exploited in-country (outsourcing industry) Encourage large (foreign) firms to make use of local low costs facilities
Trends in ICT Trends Upcoming new technologies gain ground: convergence ICT and bio-technology, nano technology, artificial intelligence On-going 'technologization' of society will change traditional social and institutional structures Policy Implications Innovation and high-level technical education important to keep up with developments Enable government and others to keep up to date through research facility Encourage participation in international research initiatives Government answer to changing society: developing new social and institutional structures to match a changing world Lifelong learning needs to be facilitated
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Definitions Policy = short to the point document that provides the governments' mission and vision in a particular area (long-term). Strategy (Master plan, Action plan) = the translation of the policy into a framework of related programmes (medium-term). Programme = a set of projects that together cover one particular area or key objective (medium-term). Project = a time bound set of activities that lead to the establishment of a particular goal (short-term).
What are good policies? Cover and integrate all aspects of ICT Have the support of all stakeholders Provide a clear mission, vision, guiding principles and overall objectives Are in line with national and international agreements and policies Forward looking and daring Yet realistic Are cross cutting in nature Are technology neutral Prioritise objectives to facilitate implementation Focus on NEED
Policy evolution 7) Monitoring, Evaluation,
-dimerent
8) New ideas, new insights, new political arena, settings
9) Need for policy and
1) Implementation
and External trends, best practices and worst failures 3) New ideas, new insights,
Part Three: ICT Policy Training Module
National Impact on ICT policy
I
I
Governments' Overall National Strategy
Poverty Reduction Strategy Paper
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multilateral agreements
Existing ICT and related policies (Trade, Telecoms)
Political, social and economic sentiments
International impact on ICT Policy /
E.,-S, 786 Members from 4 continents
WTO
146 Members
GBDe
/
W3C 300 Oqanlzational Mernhers
/
APEC: 21 Members
\
ASEAN 10 Members
OECD 30 Membels
WSlS 191 U.N. Me~ribals
(
/
ATU
European Union 1512.8 Mernbers
World Bank 1 8 4 Members
53 Mernbels
REGIONAL
\
?NIPO 179 Members
ICANN
\
/
INTERNET SOCl ETY 182 Countries
Counc~lof Europe 45 Members
\\
GLOBAL
UN-IC'I' TASKFOKCE 4 2 Re~)~esttritatives \
UNESCO 191 U.N. Membe~s
/YZLT':emaen
, UNC'I'AU
191 U.N. Members
Source: Guide to International ICT Policy Making, Markle foundation, 2003. Available from http://www .unicttaskforce.org/perl/documents.pl?id = 1312.
UNCITRAL Underlying Principles: Equivalence. Paper documents and their electronic counterparts have the same legal value Autonomy of contracts. Whether in paper form or in electronic form, the substantive content of the contract remains the same Voluntary use of electronic communication The requirements for a contract to be valid and enforceable remain the same Application to form rather than substance. In other words, the law regulates the contractual framework, form but not the content of the contract Consumer protection laws should take precedence over the provisions of the UNCITRAL Model Law
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
WIPO - IPRs "Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. Intellectual property is divided into two categories: Industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source; and Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and those of broadcasters in their radio and television programmes".
WTO - TRIPS Agreement on Trade Related Aspects of Intellectual Property Rights: Emphasizes the ownership of intellectual property Regulates globally copyrights, trademarks, industrial design, patents
ICANN - DNS a
DNS
a
ICANN
=
Domain Name System. (dot.. ..) =
The Internet Corporation for Assigned Names and Numbers.
- Allocates domain names. - TLDs = Top Level Domains Generic: .corn, .org, .net Country code: .vn, .h,.nl a
Uses "Registrars"
--
local ISPs.
- Pay to ICANN for services
Part Three: ICT Policy Training Module
ICANN - Trade mark conflict Domain names can conflict with trademarks: - What to do with someone registering
www . C O C ~ C O ~ ~ . C O ~ ? ICANNs response: - Minimum quality requirements for registration
- Respect of IPRs - Uniform Domain Name Dispute Resolution Policy (UDNDRP)
Roles of national stakeholders Private Sector
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ICT and non-ICT sectors
The Public
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Citizens (women, the young, vulnerable groups), NGOs
The Government
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Government and government affiliated agencies (incl. educational institutions, research centres)
Financing Institutions
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Banks, donors, partners
0 0
Dominance of a particular stakeholder group will influence policy focus! Different stakeholders - different approach
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Consultation process: a Model Figure 3: Participatory structure Governing body; e.g., Prime Minister of Ministry of ICT, High-level Commission I
Role: Consultative Frequency: Low
Executing agency ; E.g., ICT Agency
Role: Consultative Monitoring Evaluating Directing Frequency: Medium Role: Consultative Monitoring Evaluating Directing Freauencv: Often
Working group; ICT focal points from line ministries, representatives from key stakeholders
I
Working group; implementation agency, partners and recipients
4 4 Implementing agency; Programme
E.g., NCO,line ministry, private sector consortium
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Project
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Methods of consultation Physical
Consultative meetings Focus groups Interviews Questionnaires Competitions
Virtual
Online discussion platform Online voting Online discussion group
The DO1 dynamics of ICT development Human Capacity Knowledge Workers Intermediaries and Technology Users Entrepreneurs
Infrastructure Relative Ubiquity Strategically Focused Capacity
Enterprise Finance and Credit Property Rights and Commercial Law Fair Tax Regime Access to Global and Local Markets Efficiency and Reach of Local Business Demand Stimulus
Strategic Compact New Collaborative Partnerships Vision and Leadership Strategic Alignment Coordinated Action
Policy
Transparency and Inclusion Regulatory Framework Institutional Capacity
Content & Applications Relevance and Usability Language Compatibility Affordability Development Applications
Part Three: ICT Policy Training Module
However A policy will never be perfect.. .
.....therefore at some point one has to "get on with it"' ........
From Policy to Strategy Group policy objectives thematically Prioritise thematic groups Prioritise objectives in each group Per group define expected outcomes (results) = programmes Gap-analysis: identify key actions = projects Per group identify key resources Per group identify implementing agency, key partners and stakeholders Allocate a timeframe for each group
Gap Analysis Baseline
Expected Outcome AIMS
ACTIONS
What is missing and what needs to be done
+ RESOURCES
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Linking Pin I
Action Plan ICT Education Programme 2 Programme 3
I
Aggregated, overall, gelleral
Programme 1: ICT Education la: Awareness in schools lb: National web site competition
Programme 2 Project 2a Project 2b Proiect 2c
Programme 3 Project 3a Project 3b
Project la:
Project l c Action l b - i Action Ib - ii
Action l c - i Action l c - ii
laI - Internet radio for schools laII - Computerlabs in core schools. laIII - Integration of ICT awareness
Disaggregated, detailed, specific
ICT Agency: Organization structure Governing Board: Chairperson: Minister responsible for ICT Secretary: Chief Information Officer Members: Representatives of key stakeholder groups
Main Responsibiliiry: Responsible for the strategic management of the ICT Agency with the objective to ensure the development and delivery of ICT policies, strategies and regulations
I
C
ICT Agency Secretmim Inplernenting group Responsible for the procedural aspects of the Responsible for the substantive aspects of the ICT policy development and implementation K T policy development and implementation process such as calling of meetings, writing process such as preparatory research, drafting minutes, follow up on actions and so on. of policy documents, coordination of project implementation, maintaining relationships with partners involved, information dissemination.
c
Source: World bank
I
Part Three: ICT Policy Training Module
TQR for an ICT Agency Has a clear mandate Has adequate resources Has strong leadership Has decision taking power Has a neutral position Has the capacity to build and maintain partnerships Has a balance between technically and managerially tra.ined staff Is transparent, flexible and agile Is pro-active Is small
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Considerations Develop a resource mobilization strategy: 1. What types of investment are needed and when?
2. What are the cost involved? On a one-off basis On a regular basis 3. What costs can be recovered? 4. Balance costs and quality criteria 5. Take into account inflation and price increases
Part Three: ICT Policy Training Module
Considerations Develop a resource mobilization strategy: What resources must be mobilized externally? Which sources are available? What are the characteristics of these sources? Match sources with needs How do can we best tap into these resources?
Outsourcing as a financing option 1.
Determine: - What needs to be done in-house? Government priorities International agreements Security and legal issues - What can be outsourced? 2. What outsource modality works best? Least subsidy? BOOT schemes? Contracting? 3. What is the best financing modality? - Available finance and other resources in-house? - Piggybacking possible? - External resources accessible? - Risk assessment.
Public Private Partnership
A cooperative venture between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks and rewards. (The Canadian Council for Public-Private Partnerships)
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Public Private Partnership
Privatization
Public administration
Types of PPP Design-Build (DB) = The private sector designs and builds infrastructure to meet public sector performance specifications, often for a fixed price, so the risk of cost overruns is transferred to the private sector. Operation & Maintenance Contract (O&M): A private operator, under contract, operates a publicly owned asset for a specified term. Ownership of the asset remains with the public entity. Design-Build-Finance-Operate (DBFO): The private sector designs, finances and constructs a new facility under a long-term lease, and operates the facility during the term of the lease. The private partner transfers the new facility to the public sector at the end of the lease term. Build-Own-Operate: The private sector finances, builds, owns and operates a facility or service in perpetuity. The public constraints are stated in the original agreement through on-going regulatory authority. Build Own Operate Transfer (BOOT): A private entity receives a franchise to finance, design, build and operate a facility (and to charge user fees) for a specified period, after which ownership is transferred back to the public sector. Build-Buy Operate (BBO): Transfer of a public asset to a private or quasi-public entity usually under contract that the assets are to be upgraded and operated for a specified period of time. Public control is exercised through the contract at the time of transfer. Operation Licence (OL): A private operator receives a license or rights to operate a public service, usually for a specified term. Finance Only (FO): A private entity, usually a financial services company, funds a project directly or uses various mechanisms such as a long-term leas or bond issue.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Monitoring and Evaluation: ICT Indicators (OECD list) 0
Resources for the Information Society - Investment in ICT equipment and software - Consumption of ICT goods and services - ICT patents - Occupations and skills in the information society
0
The ICT sector
- ICT producing sectors - Size and growth of the sector - Contribution of the sector to employment growth
- R&D in selected ICT industries
-
-
Contribution of ICT sector to international trade ICT sector exports: share in total exports and composition ICT trade specification and comparative advantage Foreign affiliates in the ICT sector
Monitoring and Evaluation: ICT Indicators (OECD list) 0
Access to and use of information technologies - Telecommunication networks - Internet infrastructure - Internet subscribers - ICT access by households - Internet access by households - Use of the Internet by individuals - Internet access and use by businesses - Internet access and use by enterprise size and industry - Perceived barriers to Internet access and use in the business sector - The price of Internet access and use
Part Three: ICT Policy Training Module
Monitoring and Evaluation: ICT Indicators (OECD list) Electronic Commerce
- Infrastructure for Internet commerce - Measuring electronic commerce transactions
- Internet and electronic commerce
-
transactions Internet and electronic commerce transactions by consumers Internet transactions by product and cross-border Drivers and inhibitors of Internet commerce Barriers to Internet commerce
ICT in education and government - ICT in education Computer access Computer use at different education levels - ICT in government Internet and e-mail access of civil servants
ICT Indicators ICT indicators should be: - Developed in close liaison with NSO's
- Provide the information needed - As tangible as possible - Match as much as possible international statistical standards - Make as much as possible use of indicators already in use
Working group on ICT Statistics (UN-OECD) is developing questionnaire
Interoperability framework "A set of standards and guidelines which describe the way in which organizations have agreed, or should agree, to interact with each other. An interoperability framework is, therefore, not a static document and may have to be adapted over time as technologies, standards and administrative requirements change".
Good Practices in Information and Communication Technolony Policies in Asia and the Pacific
Interoperability in practice 1. Organizational Interoperability - Business models and processes - Organization structures - Information needs 2. Semantic Interoperability - Readability of exchanged data across different systems and applications Harmonization of platforms and applications
3. Technical Interoperability - Compatibility of network architecture and hardware
Interoperability considerations Accessibility Multilingualism Security Different security levels for each interaction type Privacy Different privacy levels for different data type Subsidiarity Use of Open Standards versus Propriety software
Part Three: ICT Policy Training Module
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
MODULE 5: NATIONAL ICT POLICY This workshop module takes off from the previous day's topic on policy formulation and applies this know-how to national ICT policy-making. Formulating and implementing national ICT strategies is perhaps the biggest challenge policy makers' face. It was emphasized that the formulation of a National ICT Policy must be driven by needs and national priorities. The National ICT Policy should contribute to national development; i.e., for the economic and social benefit of the country. It is difficult to create awareness at the political level or to adopt a state-of-the-art regulatory framework unless the elements of an ICT strategy are rooted in the reality of the national economy. Policies need to pay attention to facilitating the use of ICT within and across sectors, organizations, and production and marketing units of varying sizes. One approach in addressing this problem is to facilitate the active participation by users of all sorts in policy dialogues, to obtain an expression of their needs and to incorporate these into national priorities, and then to undertake efforts to absorb their specific requirements and circumstances into the national ICT policy planning exercise. ICT policy formulation should include various stakeholders including the private sector, key industrial sectors, civil society, the academe, government, international and regional organizations, and the end users and the general public. The institutional mechanisms should be in place for the various functions related to a National ICT Plan, to ensure proper policy formulation, resource allocation, implementation, oversight, coordination, monitoring, evaluation and regulation. While the effectiveness of an ICT policy and regulatory framework in one country does not guarantee that the same recipe would work in another, many developing countries face similar constraints that need to be taken into account when such policies are formulated. The workshop encouraged the compilation, documentation, sharing and discussion of the experiences of the participating countries, and to have this information widely available to the intended target groups. In the spirit of cooperation and sharing of these experiences, representatives of the participating countries presented the current status of their national ICT plan based on their SWOT and gap analysis, strategic framework of their plan (focusing on human resources, infrastructure and industryle-business concerns), institutional mechanisms for implementing their plan, and how they plan to monitor, evaluate and continually improve it. Under the breakout Session the following points were considered: (a)
For e-government projects to be successful, one must start with projects that generate revenue.
(b) The main challenges to implementing e-government projects are (c) Rank the following projects: (please explain your rankings): -
Local content generation
-
Single country portal
-
Community telecentre
-
ICT awareness and promotion.
Part Three: ICT Policy Training Module
Session 5: National ICT Strategies
Topics 5.
National ICT Policies ICT for Economic and Social Development, must be needs-driven Case studies Highly developed countries Newly industrialized countries Emerging economies Low technology adoptors Economies in transition Small Pacific island countries Strategic ICT Planning Methodologies Development approach such as the Digital Opportunities Initiative (DOI) Who should be involved? Private sector Civil society Key industrial sectors Government Set a National ICT Vision Vision statement Visioning exercise
Strategic Framework Human resources Infrastructure Industry Various industrial sectors such as agriculture, health, disaster mitigation, etc. Addressing the digital divide Interoperability Framework Convergence Issues Institutional Mechanisms Must be driven from the very top Oversight Policy Formulation Implementation Government ICT Body and Organizational Structure Coordination Between Different Government Agencies Government CIO's Roles and Responsibilities Role of the Private Sector Monitoring and evaluation
Method: Self-learning Continuation of the group work Presentation of each group
Part Three: ICT Policy Training Module
Schedule for Tuesday 8:30-8:50 am 8:50-9: 10 am 9: 10-9:30 am 9:30-9:50 am 9:50-10: 10 am
Bangladesh Bhutan China India Kazakhstan
coffee break 10:30-10:50 am 10:50-11:lO am 11:10-11:30 am 11:30-11:50 am 11:50-12:lOpm 12:10-12:30 pm
Malaysia Nepal Philippines Sri Lanka Thailand Viet Narn
Individual Action Plans Brief description of project Linkage to National ICT Plan Objectives, Anticipated Outcome, Benefits Human and Organizational Impact Financial Considerations Challenges Foreseen in Implementing your Action Plan Schedule and Next Steps
Action plan presentation Friday morning Per individual 10 minutes per person
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Thank you! Jay Sabido
Consultant for Information, Communication and Space Technology Division, ESCAP jayix@stanfordalumni .org
Part Three: ICT Policy Training Module
MODULE 6: E-GOVERNMENT Over the past two decades, a series of initiatives to transform government processes, "reinvent the government", create the "new public management (NPM)" or set up "Government 2.0" has been widely discussed and selectively adopted in an attempt to address perceived shortcomings and generally make government "work better" .70 Public sector reform trends include: Market Alignment - assumption is that public sector organization would be more efficient and effective if it were more like a private sector entity: use of market-style strategies and incentives to drive public policy, privatization. Productivity Enhancement - trying to be more efficient, to provide more services without having the need to increase taxes. Review of key processes, eliminating and streamlining wherever possible are some of the initiatives. Service Orientation - to make government more customer-friendly and service-conscious. Instead of being government agency centric, move towards citizen-centric public service. Decentralization
-
breaking up the bureaucracy, empowering smaller agencies.
Separation of Policy-making and Service Delivery - eliminates a potential conflict on intentions and improves policy-making and monitoring. Easier to make the service delivery part more efficient. Accountability - shift in focus from processes and structures to outputs and outcomes; accountable to citizens and the public. Sustainability . It is within this public sector reform framework that e-government becomes essential. E-government at its best can be viewed as the process of creating public value (the things that people want) with the use of modern ICT. Its ultimate goal is to continuously improve the interactions of the government, business and citizens, so as to stimulate political, economic and social progress of the society.71 Various e-government development stages were discussed including the UN-ASPA 2001 E-Government benchmark. Stage 1 is classified as 'emerging presence' which means that a government or any of its agencies have web presence; i.e., a web site. Stage 2 is called 'enhanced presence' where online resources include archived and current news and information, plus a database or databases. Stage 3 is 'interactive', while stage 4, 'transactional'. For these stages, users can now download forms, fill them up online, and transact business with the government through the Internet. The last stage, stage 5, is called 'networked presence'. At this stage, all the different government functions are integrated and connected together. Citizens access government services through a single country portal.
70 James S.L. Yong and Lim Hiap Koon, "e-government: Enabling Public Sector Reform", Chapter 1 of E-government in Asia, J. Yong, ed., Times Editions, Singapore, 2003. 71
Ibid.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Other staged models such as Layne and Lee's model, and the matrix type model of Watson and Mundi's model were presented. UN's 2003 E-Government Survey was discussed and was especially interesting for the participating countries. The workshop solicited comments, feedback, and experiences from the participating countries regarding the challenges and opportunities they faced in implementing e-government. These include infrastructure development, law and public policy, digital divide: e-literacy , accessibility, trust: privacy and security, transparency, interoperability, records management, permanent availability and preservation, education and marketing, publiclprivate competitionlcollaboration, workforce issues, cost structures, and benchmarking .72 The workshop noted the following key e-government projects: a one-stop shop for government services online, a government e-procurement system and an interoperability framework for e-government and e-hisiness information systems. In addition, the workshop discussed best practices for managing cross-agency e-government initiatives based on a white paper published by Touchstone Consulting
Session 6: E- Government
72 The E-Government Handbook for Developing Countries, infoDev and The Centre for Democracy & Technology, November 2002.
73 Touchstone Consulting Group, Inc. White paper on "Best Practices for Managing Cross-Agency E-government Initiatives", www .touchstone.com.
Part Three: ICT Policy Training Module
References rn World Public Sector Report 2003: E-Government at the
Crossroads, United Nations, Department of Economic and Social Affairs, 2003
The E-Government Handbook for Developing Countries, infoDev and The Centre for Democracy & Technology, November 2002
rn James S.L. Yong and Lim Hiap Koon, "E-government:
Enabling Public Sector Reform", Chapter 1 of E-Government in Asia, J. Yong, ed., Times Editions, Singapore, 2003
Public Sector Reform Over the past two decades, a series of initiatives to transform government processes, "reinvent the government", create the "new public management (NPM)" or set up "Government 2.0" has been widely discussed and selectively adopted in an attempt to address perceived shortcomings and generally make government "work better".
Public Reform Trends rn
Market Alignment - assumption is that public sector organization would be more efficient and effective if it were more like a private sector entity: use of marketstyle strategies and incentives to drive public policy, privatization
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Public Sector Reforms Productivity Enhancement - trying to be more efficient, to provide more services without having the need to increase taxes. Review of key processes, eliminating and streamlining wherever possible
Public Sector Reform Service Orientation - to make government more customer-friendly and service-conscious. Instead of being government agency centric, move towards citizen-centric Decentralization - breaking up the bureaucracy, empowering smaller agencies
Public Sector Reform Separation of Policy-making an Service Delivery eliminates a potential conflict on intentions and improves policy-making and monitoring. Easier to make the service delivery part more efficient Accountability - shift in focus from processes and structures to outputs and outcomes; accountable to citizens and the public Sustainability
Part Three: ICT Policy Training Module
Examples of Reform Principles Steering rather than rowing Empowering rather than serving Injecting competition into service delivery Transforming rule-driven organizations Funding outcomes not outputs Meeting the needs of the public and not the bureaucracy Earning rather than spending Prevention rather than cure From hierarchy to participation and teamwork Leveraging change through the market
E-government: a government that applies ICT to transform its internal and external processes E-government at its best can be viewed as the process of creating public value (the things that people want) with the use of modern ICT Should not change the role of government; in fact, ICT use can raise people's expectations
What ICT can provide Ultimate goal: to continuously improve the interactions of the government, business and citizens, so as to stimulate political, economic and social progress of the society Service enhancement improving reliability and accessibility Cost reduction Improve effectivity and efficiency Increased interactions between government and citizens, encouraging citizens to be more participative
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
4
Making government more accountable by making its operations more transparent and thus reducing the opportunities for corruption and Providing development opportunities, especially benefiting rural and traditionally underserved communities
E-government is not a panacea. Although it can facilitate change and create new, more efficient administrative processes, e-government will not solve all problems of corruption and inefficiency, nor will it overcome all barriers to civic engagement. Moreover, e-government does not happen just because a government buys more computers and puts up a web site. While online service delivery can be more efficient and less costly than other channels, cost savings and service improvements are not automatic. E-g.overnment is a process that requires planning, sustained dedication of resources and political will.
E-Government Strategic Framework
Part Three: ICT Policy Training Module
Domains of E-Governance
Improved Processes: E-Administration
E-Government Development Models UN-ASPA: Benchmarking E-Government: A Global Perspective, 2001
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Layne and Lee Stages Complex
Technical & Organizational Complexity
simple
Catalog Online presence Catalog presentation Downloadable forms
Transaction Services & forms online Working database supporting online transactions
Sparse
Vertical Integration Local systems linked to higher level systems Within smaller functionalities
Horizontal Integration Systems integrated across different functions Real one-stop shopping for citizens
Integration
Complete
Watson & Mundi Model
Efficiency
Effectiveness Simple
INITIATION: Single-point of access to government
INFUSION: All government is electronic government
CUSTOMIZATION: One-to-one relationship between government and citizens
Enabling web-based payment
Mass presentment, review and payment on1ine
Citizens have personal profiles for all financial transactions
Open access to government informaiton
Citizens can customize relevant information
Informed citizens
Sparse
Integration
Complete
Compelling reasons for the users of e-government to go and stay online W
Perception of added value
W
Access and skills Must be easy for the public in terms of cost, time, effort Privacy and security
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Recommendations: Transact Sites Target audiences that will have immediate use for the online services Enlist the support of those who will be using the site and address the concerns of government workers whose role will change as a result of the innovation Integrate e-government with process reform, streamlining and consolidating processes before putting them online Recognize that initial investments in transact systems can pay off over time in terms of cost savings and increased revenue Create a portal for transact services
2003 UN Global E-Government Survey Based on two main indicators: 1. E-Government Readiness Index W Web measure index W Telecommunication Infrastructure Index Human Capital Index 2. E-Participation Index Measures the willingness and ability of a country, not only to provide relevant inforW mation and quality services, but also to engage citizens in a dialog (say, for service delivery and policy-making) E-information E-consultation E-decision-making
Part Three: ICT Policy Training Module
E-Government Readiness Score
I I
1
Bangladesh
159
1
0.165
Web
1
0.092
-t 1
Human Telecoms
161
0.157
0.035
China
74
0.416
0.332
0.116
India
87
0.373
0.522
0.027
1
83
1 E;-~;;:T
0.004
Bhutan
Kazakhstan
Capacity
0.015
1
0.387
1
0.188
1
0.062
1
0.357
1
0.183
1
0.048
Malaysia Nepal Philippines Sri Lanka
I
Thailand -
Viet Nam
1
56 97
Lessons learned W
ICT has become part of the political agenda
W
Effectiveness alone cannot constitute the goal of e-government development; it must respond to the public's needs and it must be closely tied to raising the quality of people's lives Government and its ICT plans cannot progress ahead of the public, its interests and its skills; all e-government development must take place on people's terms
Lessons learned W
One of the main difficulties is in the integration of back-office systems and databases of different government departments with the "customer interface" - The need for an interoperability framework
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Lessons Learned Main risk - the culture prevailing in government offices; staff members are fearful of increased control of their work-related behaviour; managers are fearful of losing control over information
Lessons Learned 1 Prior exposure to BPR and change management help
a lot 1
Change must encompass business practices; e-government applications make sense only if they support appropriate work processes
1
Training by peers more effective Intensive must be followed by actual extensive use
Lessons Learned Design of e-government applications must be simple; must run on all operating systems and browsers Success is not a given when one uploads the application to the Internet Users of online services are very difficult to attract; they must be convinced that it is easy and advantageous, not just because it is something new
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Pilot Projects of the E-Government Flagship Electronic Services (E-Services) Electronic Procurement (EP) Generic Office Environment (GOE) Human Resources Management Information System (HRMIS) B
Project Monitoring System (PMS) and
B
Electronic Labor Exchange (ELX) Malaysia
Central Vigilance Commission In an effort to further the idea of zero tolerance for corruption, the CVC in India has been sharing with citizens a large amount of information related to corruption. The CVC web site (www.cvc.nic.in) provides practical information on how to complain about the corrupt acts. The web site has published the names of officers against whom investigations have been ordered or penalties imposed for bribery. Newsweek magazine carried an article about this effort, calling it "e-shame".
India
Part Three: ICT Policy Training Module
National Replication of E-Governance To facilitate knowledge sharing in e-governance by the different government agencies and states, the E-Governance National Resource launched the web site (www. egovdatabase .gov. in) to archive and disseminate information on e-governance applications in India. The project enables any organization planning an IT project to instantly ascertain whether any similar project has already been implemented anywhere in the country. The intending implementers would then know who the key people in similar projects are and how to contact them. The database offers a unique opportunity to share the knowledge resource from the existing projects both domestically and internationally.
India
Part Three: ICT Policy Training Module
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Karnataka's Bhoomi This project involves the computerization of land records carried out by the Department of Revenue in Karnataka. The record of Rights Tenancy and Crops (RTC) plays a vital role in the life of Indian farmers. The records are required for establishing ownership of land, for recording the succession of ownership, for recording the crop details and for obtaining loans form banks.
India
Part Three: ICT Policy Training Module
Part Three: ICT Policy Training Module
National E-Procurement Service (G2B) wwwag2bagoakr In order to increase the competitiveness of the procurement administration, its routine, redundant, and inefficient procedure needed reform. Meeting such need, the Korean government simplified the procurement processes into one single window by building a government procurement portal system that brings online all bidding information of the public sector. It is now possible for businesses to search for bidding information of the public sector and to participate in the bidding as well as check the processes real time with only one registration to the G2B system. In addition, the procedure for payment is completed within hours thanks to automatic transfer of procurement fees to registered accounts.
Korea
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Home Tax Service In answer to the inconvenience caused by submitting tax forms by post and filing tax returns at the tax offices, the National Tax Service System has been built enabling tax returns, electronic payment, and electronic civil services through an online single window. It is now possible for 105 kinds of tax related civil services such as business registration certification and tax return registration, to be processed online. Information on tax returns and reports can be received through e-mail or SMS. Also, VAT and withholding tax can be paid online. 6 kinds of certifications are now available for review at banks or related government office, no longer requiring paper documents to be issued.
Korea
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
KIPOnet Service www.kipo.go.kr As the global and domestic competition on technologies grew, investments in technological development and patent applications, along with conflicts thus raised began to grow as well. On such account, from 1995 to 1999, the KIPOnet system was established and since its completion in 1999, the application, registration, evaluation and the notifying of the results have been electronized. The services charged before are now available free o n the Internet and public notices on open patent information and registration information are automatically extracted for provision through the Internet. Korea
Real Estate Online Registration Service registry.scourt.go.kr Demand for real estate registration administration has increased since the 1990's, In order to meet such demands, T h e Supreme Court has electronized civil services in 213 registration offices including the viewing of real estate registration copies of 1994 to September 2002. Information has been electronized into e-registers and many services that were manually processed have now been fully automated for nationwide online services. Korea
National Education Information System The physical infrastructure of educational informatization has achieved the complete wiring of all schools nationwide by 2000. However, the educational administration system was separately informatized by institution, which caused inefficiency in information exchange and standardization as well as hardships in informatizing educational administration. As the solution to these problems, the Ministry of Education and Human Resources came to build a system that connects all elementary and secondary schools with education offices in local governments through the Internet. Upon completion of a system, all educational administrative services including curriculum development, students' academic record keeping, and student counselling will be processed by the system. Also it provides a better work environment for teachers and officials who manage the administration of national education. Korea
Part Three: ICT Policv Training Module
National Finance Information System Before, the national budget was managed by hand and the overall analysis was delayed with the lack of consistency in statistics due to the insufficient standardization of national finance administration. The Ministry of Finance and Economy has therefore informatized the entire national finance administration for scientific management of the budget and finance information exchange. From budget planning and its implementation, to accounting and settlement, all the processes regarding national finance are now connected online for real time management and analysis, of the national budget with daily income and expenditure of the budget is automatically accounted everyday. Korea
Personnel Policy Support System (PPSS) The government has integrated seven fields of personnel administration into a single system, building the ground for systematic and reasonable government personnel administration. With this system, paper documents and related data can be managed online.
Korea
Military Manpower Administration Information Service The military manpower administration has been informatized and the whole process of administration has been reformed. Various kinds of administrative documents have been simplified and a 24-hour non-stop service system has been devised for related civil services. Korea
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Comprehensive Legislative Information Service Considering the growing demand for legal information and the need for providing such services, the Ministry of Legislation informatized legislative information including existing and historical laws, amendments, etc. , and synthesized all information to create an online legal service system.
Korea
National Knowledge Information Service The resources in six major national libraries have been digitized and established into one online digital library, where information is available anytime anywhere. Another was established for integrated search and review of 5 areas including science technology, education, arts and sciences, culture, and history.
Korea
Seoul Open Service for Online Civil Administration The Seoul Metropolitan Government has informatized 54 kinds of civil services in 10 fields. The whole procedure of civil service processing and information such as the managing department and the officials, procedure, required documents, etc. , is open to the public.
Korea
Part Three: ICT Policy Training Module
E-Approval and E-Document Exchange By establishing a real time document exchange system, certifying or tracking service of document delivery is available. In addition, e-approval system and other administrative information system are connected to avoid duplication of data input in the approval process.
Korea
E-Signature and E-Seal For safer information exchange in cyberspace the government issues accredited certificates to people using the e-government or e-commerce services and e-signatures to government officials using official e-approval and e-document exchange systems.
Thank you! Jay Sabido I
Consultant for Information, Communication and Space Technology Division, ESCAP jayix@stanfordalumni. org
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
MODULE 7:
ICT INFRASTRUCTURE AND ACCESS: FOCUS ON POLICIES AND REGULATIONS A. Background of the ICT sector Many in academic circles74 have envisaged communications as an impetus of dynamic global interaction or linkage - i.e., globalization or interdependence - in a global village. In particular, communications per se in social science can be the very issue-area, in which 'power resources are differentially d i ~ t r i b u t e d . In ~ ~other words, knowledge or information distributed or disseminated through converged telecommunications, broadcasting and computers - called information and communication technology (ICT) - is the very resource of power76 in today's knowledge-driven or information society. However, communication 'technology itself is not the determining factor. Efficient management and implementation of the technology determines a nation's competence'77 and development for the specific sectors including telecommunications and now ICT. It has been by now two decades since telecommunication policy such as liberalization or privatization started from the United States of America and the United Kingdom of Great Britain and Northern Ireland under the umbrella of their macro econo-politics in the early 1980s has stirred the global telecommunication sector. The liberal trend was accelerated by the Agreement of Basic Telecommunications under the World Trade Organizations in the late 1990s. This telecommunication sector with the advent of the Internet - i.e., ICT - reached at the peak worldwide in the late 1990s. The ICT industry, strategically supported by some governments in Asia to overcome their economic recession, went hand in hand with its markets, which flourished with booms of dot.coms in many Asian economies under the movement of globalization. Liberalization appeared to be an ultimate direction or solution for the sector, which eventually led large-scale restructuring in over hundreds of countries worldwide with new kinds of tools regulating the liberalized sector.
74 C.R. Mitchell (1978:60), The Structure of International Conflict (London: The MacMillan Press), says that relationships build up as a result of increased contact and communication on a global rather than merely national scale; R.O. Keohane & N.S. Nye (1977, 1989), Power and Interdependence (Boston: Little Brown), also argue that dynamic interaction becomes more rasily accessible to all owing to communication and the movement of information; and S.D. Krasner (1985:25-26), Structural Conflict: The Third World Against Global Liberalism (Berkeley: University of California Press), emphasizes that even though the sovereignty may remain, revolutionary changes in the technology of communication have transformed the global system into a web of interdependence from which states can extricate themselves only at high cost.
75 P.J. Katzenstein (1978), Between Power & Plenty (The University of Wisconsin Press), D. Baldwin (1980: 471-596) "Interdependence and Power: A conceptual analysis", International Organization, Vol. 34, No. 4, and S.D. Krasner (1985).
Eun-Ju Kim (1990), Dynamic interlinkage between the Republic of Korea and the ITU through evolving telecommunications issue-structure, A Ph.D. thesis, at the London City University, London, p. 27. 77 Eun-Ju Kim (1993), "Telecommunications development in the Republic of Korea", Telecommunications Policy, Vol. 17, No. 2, London, pp. 118-138.
Table 1. ICT indicators (1995 and 2000)
Asia and Pacific region
N.E. Asia
China Hong Kong, China Japan Macao, China Mongolia Democratic People's Republic of Korea Republic of Korea
S.E. Asia
Brunei Darussalam Cambodia East Timor Indonesia Lao Pepple's Democratic Republic Malaysia Myanmar Philippines Singapore Thailand Viet Nam
S.W. Asia
Afghanistan Bangladesh Bhutan India Iran Maldives Nepal Pakistan Sri Lanka
Pacific Islands
Australia Cook Islands Fiji Kiribati Marshal1 Islands Micronesia New Zealand Papua New Guinea Samoa Solomon Islands Tonga Tuvalu Vanuatu
GDP Per capita US$
Telecom Per 100 inhabitants Fixed
Mobile
Broadcasting Per 100 inhabitants
IT Per 100 inhabitants Estimated PCs
Internet users
Sources: ITU (1997), Aria Pacific Telecommunication Indicators, ITU (2002), Internet for a Mobile Generation, ITU (2002), World Telecommunication Development Report, APT (2002), Year Book.
Table 3. ICT policy-monopoly vs. competition Telecoms (2000 & 2001)
Asia and Pacific region
N.E. Asia
S.E. Asia
S.W. Asia
Pacific Islands
Sources:
Policy maker ministry]
Regulator
Incumbent operators
China Hong Kong, China Japan Macao, China Mongolia Democra People's Republic Korea Republic of Korea
M11 ESB MPHPT GDTTI MO1
M11 OFTA
m
Brunei Damssalam Cambodia Indonesia Lao people's Democratic Republic Malaysia Myanmar Philippines Singapore Thailand Viet Nam
vlINCOM JTB MPTC POSTEL MOC
Afghanistan Bangladesh Bhutan India Iran Maldives Nepla Pakistan Sri Lanka Australia Fiji Kiribati Marshall Islands Mocronesia New Zealand Papua New Guinea Samoa Solomon Island Tonga Tuvatu Vanuatu
MPT MIC
MCTPC MECM MCTPC DOTC MCIT MOTC DGPT PM MPT MOC MCIT PTT MCST MIC MOST MPT DClT A MCWE MICT MTC TCI M ED PANGTEI MPT MTWAC MOTC MWCT TVL
Policy
Per l00
Subscribers
Residential tariffs (2000,
Subscribers
World rank
Connect US%
Mon. fees US$
Policy
Per 100
Tariffs (2000) World rank
Connect US%
NTT CRC
MTC
MPT KT
MCMC NTC IDA
BTRC BCA TRAI MTA NTA PTA TRC ACA
MTC
JT M PT PT TELKOM LTC TM MPT Several ST TOT,CAT VNPT MOC BBTB BT BSNL TCI DHIRAAGU NTC PTCL ST TELSTRA TF TS K NT A TCNZ
STC TTC TTC TV
1TU (2002). Infernetfor a Mobile Generaion; Trends in Telecommunica~ionR@om; & Global Directory
* :30 hours per month; C
= competition; M = monopoly; P = partial C.
Mon. fees US$
Internet users Policy :number)
Per l00
World rank
Internet tariffs (2001)*
Peak
Offpeak
Part Three: ICT Policy Training Module
C. Liberal policy leading to sector reforms and regulatory frameworks As a way of introducing the liberalization or privatization, many countries preached by international organizations like the WTO, ITU, and World Bank began to move from a monopoly to a competitive telecommunication sector but with new regulatory principless0 such as 'competition safeguards or prevention of anti-competitive behaviour, interconnection, licensing, universal service, fair allocation and use of scarce resources (numbering, radio frequencies etc.) and independence of r e g ~ l a t o r s . ~Some ~ countries like Hong Kong SAR and Australia have further developed their regulatory mechanisms subject to their maturities or needs: e.g., pricing, re-balancing , number portability , industry self-regulation, codes or conducts etc. This policy also forces many to undergo sectoral reforms or restructuring by separating policy makers (e.g., traditional PTTs or ministries), regulators, and operators in the telecommunication sector (Table 3). As a result, a few sector-specific regulators in the 1980s increased to over 110 worldwide and 15 in Asia and the Pacific as of 2002 with different approaches and conditions depending on countries. Interestingly, New Zealand's telecommunication market was fully privatized without a sector-specific policy maker and regulator a decade ago. Yet, now, the Ministerial Inquiry has been recommended that an Electronic Communications Commission be set up a sector regulator. Influenced by convergence of ICTs directly or indirectly, some have gone even further moving towards multi-sectoral or converged ministries (e.g., Ministry of Information and Communications in Republic of Korea, Ministry of Information Industry in China, and Department of Communications, Information Technology and the Arts in Australia in the 1990s, the Ministry of Communications and Information Technology in India and the Ministry of Information and Communications Technology in Thailand in 2002.) and regulators (e.g., the IDA in Singapore and the CMC in Malaysia in the late 1990s) in this region (Tables 3 and 4).
D. Different roles between policy maker and regulator Ministries responsible for communications (or PTT), which used to be the sole State Members of ITU, began to raise questions and concerns over their roles in the liberalized environment, where separate - if not, independent - regulators are being set up. Indeed, what are the difference or relationship between the two? Roles of policy makers are in principle to set broader policies (e.g., whether to regulate or liberalize) andlor visions for the direction of a specific or converged sector(s). For instances, the Malaysian Government set a sector-specific policy for communications and multimedia, through which Malaysia aims to be a major global centre and hub among others.83 Whilst, the Bhutanese Government set its national vision and policy on telecommunications and IT under 'A Vision for Peace, Prosperity and ~ a ~ ~ i n e s Ins .case ' ~ ~of China, Ministry of Information Industry aims to facilitate the rapid growth of the whole industry by intensifying the structural adjustment, expanding domestic demand, increasing the export volume and promoting the exploitation of information
80
Refer to 7 liberalizing measures and 14 harmonized directives within the European Union alone.
81 It is requested by consumers to protect from the abuse of dominant position and anti-competitive behaviours including mergers or acquisitions. Refer to Ron Cameron (2001), "Critical issues affecting Hong Kong consumers and potential consumers", a paper presented at the ITU Regional Meeting of Consumer Societies, Mumbai, India.
82
83 84
Regulatory principles stated in the Reference Paper under the GATSIWTO. Refer to the Communications and Multimedia Act 1998, Malaysia. Refer to the telecommunication and IT sectors at Part 111, Chapter 4, Para 184-185, Bhutan 2020.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
resources for the 2 1 century. 85 These sector-specific policies may move towards more crosssectoral or overall industrial policies when the convergence of ICT is further developed or even integrated into the overall industries as being experienced in other advanced economies like the United ~ i n g d o m . *Nevertheless, ~ there are still many countries in this region without a policy for telecommunications andlor ICT, although most have policy makers - i.e., the relevant ministries (Table 3).
Roles of regulators include more detailed day-to-day operational functions in the liberalized sector such as granting new licenses, approving interconnection prices, policing prices charged to customers for changing operators, maintaining and promoting effective competition through examining alleged anti-competitive behaviour, promoting the interests of consumers through ensuring quality of services, allocating radio frequencies based on various means (e.g., auctioning, beauty-contest etc. ) depending on each country. Interestingly, the majority of countries in this region regulate the, telecommunication sector one way or another with or without separate or independent regulators, although the regulatory tools or terms are different. It is also worth noting that Type One countries with strong ministries such as China, Japan, Viet Nam, Maldives and the Republic of Korea have neither independent nor visible regulators at least by now. Nonetheless, their telecommunication - even ICT - indicators have better performed (Tables 1, 2 and 3). In a long run, while sector-specific regulators with increased numbers are being formed, countries may move towards converged or cross-sectoral regulators by reducing sectoral regulation, where it was no longer necessary, subject to different phases of development in each country.
E. Competitive ICT sector with multi-players It used to be just a relation of two poles between the government (e.g., PTT) and the publics in the monopoly era, as least for the telecommunication sector in early days. However, stakeholders in the converged ICT sector multiplied with conflicts of interests in the liberalized era which led many to pursue top-down or government-driven liberalization policy dealing with them - i.e., industry andlor consumers - although their priorities and practical measures differ from countries to countries: e.g., ensure competitiveness and productivity of industries and protect consumer benefits or public interests from market-led industries. In case of the incumbent telecommunications operators (Table 3), there are still state-owned monopolies (e.g. , BBTB in Bangladesh, Jabatan Telekom in Brunei Darussalam, MPT in Cambodia, Democratic People's Republic of Korea, Myanrnar, and VNPT Viet Nam). However, many have been corporatized, but still retaining full state-ownership (e.g., Bhutan Telecom, BSNL in India, Nepal Telecom, and TOT and CAT in Thailand), while yet others have been undergoing incremental processes of privatization at different phases (e.g., Korea Telecom, China Telecom, Telstra in Australia, PT Telkom in Indonesia, TCI in Iran, NTT in Japan, LTC in Lao People's Democratic Republic, Telekom Malaysia, MTC in Mongolia, PTCL in Pakistan, Singapore Telecom, Sri Lanka Telecom) except TCNZ in New Zealand fully privatized in 1990 and many operators in the Philippines. Most privatized telecommunication incumbents have in recent experienced sharply falling market values due to not only managements of any particular company or nation but also impacts from the overall national and international econo-politics, which is more and more interdependent one another especially in the era of globalization stimulated by ICTs. There are also new operators emerging from competition in various services from fixed, mobile to Internet (Table 3). 85
Ministry of Information Industry (1999), Annual Report on China's Information Industry.
86 In case of the United Kingdom, the role of ministry (i.e., Department of Trade & Industry) is aimed 'to increase competitiveness and scientific excellence in order to generate higher levels of sustainable growth and productivity in a modern economy. Refer to the Chapter 11: Department For Trade and Industry of the Public Service Agreements targets for 2003-2004.
Part Three: ICT Policy Training Module
At the same time, roles of private equipment manufacturers (e.g., Samsung , LG, Huawei, Toshiba, Fujitsu, Shanghai Bell, Hitachi etc., in Asia) are becoming stronger at not only domestic and regional levels but also global ones (Table 2). The converged ICT industries, most of all, allow not only big national and multinational service or equipment companies to have more opportunities but also local small and medium sized enterprises (SMEs) to create more employments in niche markets beyond national boundaries through e-commerce and various applications with creative entrepreneurship. As a result, over the last several years, lots of so-called dot.com ventures have fast emerged, merged, or closeddown in many Asian countries, while some of the healthy ones have begun nestling in countries like Republic of Korea and Thailand. Competition has also provided consumers with a choice of services and their providers. In case of costs, however, one argues that it is not liberalization or competition alone but a combination of technological evolution, increasing usage or traffic, and reasonably matured competitive markets, which leads to falling unit costs of telecommunications and ICT services. Some consumer groups point out that the benefits from liberalization may not always permeate through to consumers because of regulations such as high licence fees and revenue sharing imposing double prices on consumers. Others request regulations such as price rebalancing with regular monitoring to ensure lowering of tariffs. Consumers or users further raise their voices for basic - if not, universal - access to services, quality of services, interoperatibility through standards, roaming, and number portability in the liberalized sector or market.
F. Policies for ICT applications Unlike telecommunication technologyg7and services (e.g., especially voice), information technologys8 and services (e.g., data or valued added etc.) have been developed in liberalized markets in most countries. ICT is indeed a very critical technology to realize such a convergence since the advent of Internet (i.e., inter-networks) , which enables transmission of knowledge, data, images (e.g., broadcasting) and even voice (e.g., telecommunication) worldwide in an instant on a real time basis as two-way communications for both point-to-point and point-to-multipoint. The ICT has double strengths - i.e., not only as its own growing sector with full of potential in the hardwarelsoftware industries but also as a means to mainstay other sectors such as agricultural, heavy, bio-chemical industries, etc. Furthermore, both hardwarelmanufacturing and software industries in computers, broadcasting and telecommunications have been traditionally large national or multinational conglomerates. However, ICTs can bring more opportunities to SMEs, which is of significance for healthy economy in any country.89 It is worth noting that each ICT sector has in general evolved with different paths over time from various aspects from technologies to policies as illustrated in Table 4. Technological evolution or convergence ranging from fiber-optical cables, satellites, broadband, IMT 2000 to Internet Protocol (IP) etc., indeed has led some countries to adopt a technology-neutral policy and regulations especially under the GATSIWTO and converge the relevant administrations.
87 It is a technology of bothleither 'as a process [or transmission], by which A sends a message to B upon whom it has an effect' andlor 'as a negotiation and exchange of meaning'. Refer to Tim OYSullivan,John Hartley, Danny Saunders & John Fiske (1985), Key concepts in communication, Mehuen, London, p. 42.
88 It is originally a technology of 'storing and retrieving knowledge or data University Press (1997), Oxford Compact Dictionary & Thesaurus, Oxford.
"
-
i.e., computer.'88 Refer to Oxford
'59 per cent of small business and 92 per cent of medium-sized businesses have Internet access in United Kingdom'. Refer to E.I.U. (2001), News on 4 May and 9 May.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Table 4. Different evolutionary paths of ICTs over time in Asia and the Pacific
Unlike telecommunication services (e.g., voice) required for operators' licence(s) such as basic, individual or facility-based etc., with various conditions, IT services (e.g., data) historically have been categorized as value-added service requiring no-regulation or simple registrations. Thus, when talking about the policies of converged ICTs, the concept and scope are rather different from that of telecommunications alone - i.e., there is no particular need for pushing liberalization or privatization of IT. These different policies (Tables 1 and 3) lead to compare the speed of growth or access among fixed telecommunications, broadcasting, and IT: e.g., each took over 120 years, some 50 years and less than 10 years respectively to reach around 50 per cent of penetration rates in countries like Republic of Korea and Japan. Thus, many argue that such ever-fast growth of IT and its sector owes to the liberalizing policy or light-handed regulation. Then, how to explain other countries like New Zealand, which introduced full privatization even without sector-specific ministry or regulator, performing less in their ICT indicators?
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
existing lawg8 and many countries such as Australia and United States began to issue the Spam Act. Here, it is interesting to note that the macroeconomic theory of 'invisible hands at markets' is neither always practicable nor beneficial for all. These pros and cons of phenomena require not a single sectoral policy but for pan-sectoral policies through awareness, collaboration and coordination among various administrations, NOGs and even individuals at various levels from national to international for optimum use of ICTs and its various applications. It is also worth reminding that there are not many comprehensive ICT policies or legislation as yet, although India is in the process of issuing the Communication Convergence ill^^ and Malaysia enacted Communications and Multimedia Act in 1998.1°0 This convergence with its pros and cons encourages not only telecommunications but also various other sectors to review and establish different layers of policies for various stakeholders on the following prerequisites subject to national circumstances from geography to demography: e.g. : Mechanisms to raise capital or funds (e.g., bonds, soft loans, licence fees, Universal Service Obligation Funds etc .), Development of infrastructure (e.g., access to or availability of electricity, transportation, hardware like computers, and connectivity and interoperability of various telecommunication networks and equipments) , Payment mechanisms (e.g., credit cards, banking, exchange with goods etc.) , Education and training for human resources (e.g., curriculums at regular schools, vocational schools or centres, distance learning etc., for and through ICT), Socio-cultural awareness (e.g., ICT as a means for poverty eradication, equality of genders, access from the underprivileged groups including the disabled, environment etc.) , Economic empowerment (e.g., ICT as a tool for new business and employment opportunities etc.), Local languages and contents (e.g., multi-lingual software, local contents relevant to the countries or states etc.), Technical and legal measures for security and confidence (e.g., standards, cyberlaws etc .), Research, development, transfer, and implementation of new technologies not only promoting ICT and overall industries but also affordable services at remote and rural areas, Political visions and wills with transparency and commitment, and last but not least, and Stable social, economic and political environment.
98 Penalties of some US$ 26,500 for unwanted spam mail will be enforced from 2005 along with other restrictions under the regulations of promoting use of ICT and projecting information. Refer to an article on 21 April 2004 at http://www.donga.com/ fbin/output?f =todaynews&code = k-&n=2004042 10303&main= 1.
The Government of India (2002), A draft document of The Communication Convergence Bill 2000, New Delhi, India. loo T.S. N. A. Hamid (200 l ) , Malaysian Communications and Multimedia Commission, "Equality, Accessibility and Affordability", a paper presented the Asia-Pacific Regional Workshop on Equal Access of Women in ICT, organized by ITU, 22-26 October, Seoul, Korea.
Part Three: ICT Policy Training Module
G. Indigenous policies for the development of ICT infrastructure and access As the information society per se is not the goal but a base through which the publics or stakeholders - industries and consumers alike - improve and optimize their businesses and lives, so teledensity per se - i.e., access - is not a sole indicator or goal for success or failure of the particular sector. The access should be ensured as a basic human rightlO' regardless of location, gender, age, and disabilities with quality and choice of services at affordable prices through various means of technologies subject to each country's economic, demographic and geographic circumstances. Can this basic right be assured by technologies or liberal markets alone? Certainly not in any of the countries in Asia and the Pacific! That is why policies are in principle required - but neither regulations for the sake of regulators, nor de-regulation for the influence from external forces in the era of globalization. In reality, hardly any single body - whether public or private - can meet the requirement, which in return call more stakeholders or partners involving in transparent process, efficient managementlgovernance and effective implementation. Competition through liberalization or privatization can be one of the tools to stimulate the industries but under the safeguards to avoid abuse of any dominant powers as well as the appropriate licensing schemes in case of limited resources (e.g., radio frequencies) ultimately for the sake of both the industry and consumers. Here, the roles of policy makers and regulators are required with expertise and transparency. The liberal economic policy in the telecommunication sector has contributed to facilitating the development of telecommunication infrastructure - i.e., access and affordability - through competitive operators in some countries, especially where sector-specific liberal policy is being embraced by the overall econo-political regimes. However, the liberal policy is not the only solution or success factor as preached by the liberal economies or international organizations. Some such as Republic of Korea and China have proved and performed better in their services, equipment and even infrastructure through the incremental liberalization over time. At the same time, the majority of countries still struggle and suffer from either introducing or implementing a liberalization policy in their telecommunication sector, which does not fit into their traditional social, cultural, econo-political system or their natural climates and geography. Moreover, others like Tonga and Kiribati have already begun de-privatization after having troubles from liberalization - e.g., a foreign operator entered the market has pulled out. They may not be the last ones. In reality, a few lessons learned from the survey on ICT policy and regulationslo2 undertaken among some ten countries in Asia and the Pacific region include: e.g. :
1.
Most of countries attended the survey have already telecom andlor ITIICT policies influenced by either their internal needs or external pushes;
2.
There are different effects on the development of ICT in the countries depending on whether the telecommunications andlor ICT policy has been developed or driven by 'external7 push or 'internal' pull: i.e., countries driven by external forces or even assistances to place the policy have not realized the development and growth of ICT infrastructure and access. Thus, the needs, means and determinations for developing and implementing the policy are encouraged to come from each country itself;
lol
WSIS (2003), "Declaration of Principles: Building the Information Society: a global challenge in the new Millennium".
lo2
Eun-Ju Kim (2004), "ICT infrastructure and access: IV - Case Study", op. cit.
Good Practices in Information and Communication Technolony Policies in Asia and the Pacific
Having policies, laws, and regulatory frameworks alone is neither the critical nor the only factor for their development of ICT: i.e., most of the countries have already their own regulatory frameworks, which were developed for telecommunications and are now used for the converged ICT. But, many countries have not achieved the development of ICT infrastructure and access;lo3 Freelopen market policy or fulllsudden liberalization alone has not attributed to the development of ICT in the most economies of Asia and the Pacific region, either: i.e., the success or real development is based on a combination of socio-economic wealth and size of economy, econopolitical regime, and most of all efficient management by local manpower; Political vision, will, determination and stability have contributed to the overall growth of ICT infrastructure and access as well as implement the policy in their ICT sector; 'Efficient implementation - i.e., management or governance - with streamlined and transparent procedures' is more critical to promote the development of ICT industry and satisfy customers' expectation; and Last but not least, constant 'human resources development' for country's own expertise is the very key factor for developing ICT in a longer-term to be independent from external consultancies and experts eventually. In conclusion, no single country has proved that the telecommunication sector or even converged ICT sectors could be managed with invisible hands of the markets alone. Any policy per se, moreover, won't be the only success factor either, unless there are political will and commitment, transparent management by policy makers and regulators, efficient operation of - possibly competitive - suppliers, and of course demands from users for quality and choices of services at affordable prices at national levels. It is each country that should be able to develop and update its own - or indigenous - ICT policies and regulations over times taking into account their different priorities, benchmarks and circumstances. The world - both haves and have-nots - should respect each other and seek digital opportunities together to make the world better place in the interconnected ICT era.
lo3
Eun-Ju Kim (2004), "ICT infrastructure and access: II & I11 - Regulatory Frameworks", op. cit.
l98
Part Three: ICT Policy Training Module
International Telecommunication Union
7. ICT Infrastructure and Access - I: Policies & Regulations in I + CT ESCAPIITU Regional Training Workshop on Enabling Policies and Regulatory Frameworks for Information and Communication Technology (ICT) Development in the Asia-Pacific Region 5 May 2004 Bangkok, Thailand Dr. Eun-Ju Kim ITU eun-ju.kirnaitu. int
Overall Structure of Training 0830-1000 hours, Policies & Regulations in K T : Current Status and Challenges - Development of ICT Infrastructure and Access Evolving Policies and Regulations in ICT driven by Technological Development and Convergence
> >
1030-1200 hours, Regulatory Frameworks I: Independence of Regulator Competition Safeguard Licensing and its Criteria
9
> > 1300-1430 hours, Regulatory Frameworks 11: > Scarce Resources (e.g., Spectrum, Numbering, etc.) > Interconnection > Universal Service and Its Funds > Costing & Pricing Others through converged ICT
1500-1630hours, Good Practices & Lessons of Countries in Asia and Pacific Region - Analysis of survey
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Agenda Policies & Regulations of ICT: 1. Current Status and Challenges: Development of ICT Infrastructure and Access 2. Evolving Policies and Regulations of ICT driven by Technological Development and Convergence
Telecommunications = 'ICT' already? Telecommunication: 'Any transmission, emission or reception of signs, signals, writing, images and sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems' . - Extractj?om Annex to ITU Constitution i.e. , Telecommunication is already broad enough to integrate ' Internet' : Internet is part of evolving technologies of telecommunications.
Part Three: ICT Policy Training Module
Why ICT Is So Important, Today? J Beauty of ICT is various applications and opportunities for
"socio-economic development" J But, such various ICT applications and opportunities won't
be able to be achieved without reliable and affordable ICT infrastructure - i.e., access to the ICT
What is 'access'? Access to ICT means the making available of facilitiesland or services, to another undertaking, under defmed conditions, on either an exclusive or non-exclusive basis, for the purpose of providing electronic communications services. It covers, inter alia Access to network elements and associated facilities and services Access to physical infrastructure, software systems Access to number translation systems Access to mobile networks, for roaming Access to conditional access systems for digital television services and Access to Internet
Status of ICT Infrastructure and Access
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Part Three: ICT Policy Training Module
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Part Three: ICT Policy Training Module
International communications capacity, Gbitls, ASP
+-
Telephone
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Part Three: ICT Policy Training Module
Policies & Regulations in ICT: Toolsfor Improving ICT Infrastructure & Access
Trends of changing & evolving policies Telecom Sector: Fixed: - Regulated - Monopoly Mobile: - Regulated - Dupoly/Multiple
IT Sector: - Un-regulated - Multiple
De-Regulated, liberalized, privatized, or re-regulated with more detailed, but 'soft' regulatory frameworks Getting regulated with 'hard' laws
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Why liberal policies?
Efficiency Competitiveness and Accessbility Affordability
Industries - Operators
- HW & SW companies and
P Consumers
Liberal Policy vs. ICT Growth Telecommunication sector, traditionally both regulated and operated by the government andlor state-owned monopoly, has been transforming towards deregulation, 'progressive' liberalization or privatization Liberalization with 'competition' especially in mobile services led them to outnumber fixed line services in both developed and developing countries (e.g., Cambodia) Internet capacity, developed at liberal markets, exceeded international telephone circuit capacity in 2000
Thus, yes, liberal policy led to growth in the telecom sector .... But !
Part Three: ICT Policv Training Module
Liberal policy with more detailed regulatory frameworks! Competition for a choice of services & suppliers as well as for competitive - if not, affordable - prices Universal Service Obligation & its funds from the incumbents andor various operators for access to even rural & underprivileged groups Pricing & Rebalancing to reducelupdate tariffs for affordability; etc.
because of
l
I
correlation between 'policy/regulation' & 'access'
Liberal Policy: Leading to Sectoral Reform J
Most operators have been separated from the ministries
J
Many underwent sectoral reforms or restructuring by separating regulators from policy makers: e.g., over 110 worldwide and 17 in Asia-Pacific (recently Nepal, Bangladesh & Maldives)
J
Influenced by convergence of ICTs, some moved further towards multisectoral or converged ministries (e.g., Korea, China, Australia, India, Thailand, Nepal etc .) andlor regulators (e .g. , Singapore, Malaysia, Bhutan, Mongolia etc.)
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Major Regulatory Frameworks (1) Licensing carriers or service providers for different types of licenses, but ideally on 'technology-neutral', subject to availability of scarce resources (e.g., radio spectrum) Pricing services through various mechanisms ranging from price-cap, rate of return, to rebalancing of tariffs in accordance with maturity of markets or industries Quality of Services through setting its criteria and monitoring them
Major Regulatory Frameworks (2) Ensuring interconnection among different fixed & mobile carriers7networks on a fair, open, transparent, and non-discriminatory base through setting the financial, administrative and technical terms Managing radio spectrum for maximizing its limited resources with coordination with neighbouring countries and regions to avoid any harmful interference Ensuring competition to provide various operators with level playing grounds or non-discriminatory bases through removing entry barriers to new entrants inter alia Universal Service or Access to ensure that, as far as possible, no geographic area or social group (including people with disabilities and in needs) is deprived of access to telecoms service on reasonable terms; and so on ....
Regulatory Principles in The Reference Paper* The RPs are not just limited to Telecom sector but applicable to IT, now ICT sectors
P I
1. Competition safeguards or prevention of anticompetitive behaviour 2. Interconnection guarantee and charges transparent or public availability of licensing criteria 3. Independence of regulators from operators 4. Fair allocation and use of scarce resources (e.g., frequencies, numbers, rights of way etc.) and 5. Universal service RP ..... now adopted by 72 governments
Part Three: ICT Policy Training Module
Streamlined regulatory Processes: Public availability, transparency, & efficiency J
J J
Streamlined regulatory processes - esp., licensing - with certain deadline (e.g., 30 days after application), if not one-stop licensing Public Consultative Documents to resolve problems, issues and complaints Public Hearings to hear various voices Structured Consultative Proceedings based on the submission of written comments by interest groups Use of Analytic Findings by interestedlconsumer groups Reply Comments by interestlconsumer groups Advice from various forums or advisory committees
J
Analytical researches by regulator's own staff or contractors on specific issues; and so forth
J J J J
Why Public Availability? - - - - - - - - For TRANSPARENCY!!! It will benefit for any parties, should regulators' activities be publicly available and transparent through announcing and updating their ordinances, orders, directions, determinations, licensing conditions and criteria, the list of licensees, performance pledge and so forth in their annual reports, newsletters, or even Internet Homepages.
Having ICT Policy itself is no use, unless ensuring & implementing: e.g., g
GOVERNANCE: Policy makers & Regulators
- Policy & regulatory tools with political wills at national levels MANAGEMENT: Industries
- Operators/suppliers with their own interests or as an obligation of universal service - Various SMEs with more creative entrepreneurship
SOCIAL ACTION: Communities
-
9
+ Civil society
Various initiatives like telecentres
Users/Consumers protected
-
To demand & monitor for I n s at affordable prices with choices and quality of services
International & Regional Rules harmonized
-
To deal with trans-border issues esp., borderless ICT era
Part Three: ICT Policy Training Module
International Telecommunication Union
7. ICT Infrastructure and Access - 11: RF 1 - competition & licensing ESCAPIITU Regional Training Workshop on Enabling Policies and Regulatory Frameworks for Information and Communication Technology (KT) Development in the Asia-Pacific Region 5 May 2004 Bangkok, Thailand Dr. Eun-Ju Kirn ITU eun-ju.kim@itu. int
Agenda = Major Regulatory Frameworks 1030-1200 hours, Regulatory Frameworks I:
9 Independence of Regulator 9 Competition Safeguard 9 Licensing and its Criteria
1300-1430 hours, Regulatory Frameworks 11:
9 Scarce Resources (e.g., Spectrum) Interconnection
9 Universal Service and Its Funds 9 Costing & Pricing P- Others through converged ICT
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Independence of Regulator
Major Check-list for role of regulators Separated regulator Objectives of regulator Role of regulator Organizational structure of regulator Ways of maintaining independence Ways of financing regulator Ways of appointinghelecting chairman & staff Legislation of its functions
Part Three: ICT Policy Training Module
J 0
0
Emergence of Regulators Increasing separate regulators in Asia - Hong Kong, China: Office of Telecom Authority (OFTA) - India: Telecom Regulatory Authority of India - Australia: Australian Communications Authority - Korea: Korea Communications Commission - Bangladesh: Bangladesh Telecom Regulatory Commission - Nepal: Nepal Telecom Authority - Maldives: Telecom Authority of Maldives Emerging converged regulators in Asia - Malaysia: Malaysian Communications & Multimedia Commission - Singapore: Infocomm Development Authority - Bhutan: Bhutan Communications Authority - Mongolia: Communications Regulatory Commission
J Objectives of Regulators Protecting user interests and considering user complaints Providing the industry with a level playing field for fa competition, if liberalized 0
Supervising the dominant operator to prevent them from anti-competitive behaviour
0
Stimulating innovation for technologies Stimulating investment in the public network particularly in some developing countries
A Case Study on OFTEL, the United Kingdom 0
To promote fair, efficient and sustainable network competition
0
To promote fair, efficient and sustainable service competition To secure license enforcement and fair trading
0
To secure fair distribution of the benefits of competition for different groups of customers and To protect consumer interests
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
A Case Study on OFTA, Hong Kong, China 0
To provide consumers with good quality of service at reasonable prices with a variety of choices
0
To ensure telecommunications networks and services to be interconnected among liberalized & privatized companies in competitive IT markets
0
To ensure healthy competition in the market through creating a level-playing field and To ensure efficient and effective management of scarce resources such as spectrum and numbering
J Major roles of regulators A Case of the United States: The FCC 0
Developing and implementing regulatory programmes
0
Processing applications for licenses or other filings
0
Analyzing complaints
0
Conducting investigations and Taking part in FCC hearings
A Case of the United Kingdom: OFTEL 0
Ensuring that licensees comply with their license conditions
0
Initiating the modification of license
0
Advising the Secretary of State for Trade and Industry (DTI) Obtaining information and arranging for publication Considering complaints and inquiry made about telecornrnunicatio~lsservices or apparatus
Part Three: ICT Policy Training Module
A Case of Hong Kong, China: OFTA Implement technical & economic regulatory frameworks (e.g., interconnection, numbering, spectrum management and coordination etc .) Promote economic efficiency & competition in the provision of telecommunications networks, systems, installations, customer equipment and services Protect consumers' interests through ensuring competition and safety/ quality of telecom services Grant and administer licenses Investigate, and take appropriate action for, breaches of terms and conditions of the Telecommunication Ordinance and licenses
J
Degree of independence
Independent regulators should be to some degree of independent or autonomous in such areas as: Day-to-day operation of telecommunications/ICT facilities and services Day-to-day implementation of policies decided by the relevant ministry and Decisions independent from interest parties or groups
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J
Ways of financing regulator
>
Finance its establishment and operational costs by the government as a start-up
>
Adopt a separate budget for operation (e.g., the Trading Fund Agreement between the government and OFTA to cover staffing and other administration costs of regulator) Utilize the license fees covering administrative costs
J Ways of appointing Chairman & staff Chairman supported by commissioners? Head (e.g., DG) appointed or selected by the government (e.g., Minister or President)? Commissioners selected by the senate? Political appointee or civil servant? Full-time basis or part-time basis? Fixed or flexible term? Civil servant or quasi-public officers? Staff from civil servant examination or recruitment based on competence1 expertise?
J
Legislation for regulators
United States: The Communications Act of 1934 with amendments United Kingdom: The Telecommunications Act of 1984 Hong Kong , China: The Telecommunication Ordinance of 1963, supplemented by the Telecommunication Regulations and the Telecommunication Ordinance 2000 India: The TRAI Act, 1997 Malaysia: The MCMC Act, 1998
Part Three: ICT Policv Training Module
SUMMARY Liberalization policy with convergence of ICT led to created a new or converged regulators for telecom andlor ICT worldwide, and Asia & Pacific in particular Regulators face double challenges:
- One for its internal issues from setting-up to managing its own organization with expertise and resources in various, complicated and even new regulatory areas
- The other is to ensure development and healthy growth of ICT sectors through placing appropriate regulatory frameworks timely, efficiently and transparently based on delicate balancing 'hard' and 'soft' regulations in the converged ICT environment
Competition Safeguard
Dynamic telecom & converged ICT environment M
M
B
The national monopolies are now facing competition due to liberalization or privatization Some 90 per cent of world revenue committed to ensure competition gradually before 2005 as a consequence of WTOIGATS agreement Competition - or competition safeguards - became more on agenda for regulators worldwide in converged ICT
Good Practices ,in Information and Communication Technology Policies in Asia and the Pacific
Major Check-list for Competition J
Definition of competition
J
Major objectives of competition
J
Key competition principles
J
Ways of analyzing & ensuring competition
J
Various trends of competitions
J
Needs for competition laws & authority
J
Barriers of effective competition
J
Definition of competition?
Competition is defined as "the process by which economic agents acting independently in a market limit each other's ability to control the conditions prevailing in that market" Its essence is "rivalry &freedom to enter a market" Source: M.E. Beesley & S.C. Littlechild, 1997.
J
Major objective of competition
To enhance economic efficiency as well as economic welfare through: - Maximizing consumer beneflts with potential provisions for more choices and better quality of services on not always cheaper but reasonable prices; and - Limiting monopoly power especially in traditional telecommunications markets or industries ...
Part Three: ICT Policy Training Module
J Key competition principles Comprehensiveness of coverage Transparency a
Accountability Non-discrimination and Competitive neutrality
Ways of analyzing competition Defining the relevant market, first: i.e., The followings are not directheal competition: - Between fixed and mobile - Fixed or mobile in different zones/provinces Assessing effects on competition: e - Market shares over time - Position and number of compet - Entry barriers - Pricing and profitability - Excess capacity and so forth
J Ways of ensuring competition Practice Under the GATS/ WTO a Competitive safeguard a Prevention of anti-competitive practices: e.g. Cross-subsidization Not making available to other services suppliers on a timely basis technical information about essential facilities and commercially relevant information etc.
Practice Within APEC Econonzies Prevention of abuse of dominant position Prohibition of restrictive agreements Prohibition of concentration through mergers and acquisitions and Prohibition of unfair competition etc.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J Trends of competition: In Internet Countries
ISP C = competition M = monopoly
Users (Per 100 habitants)
Tariffs (Off-peak: 30 hours/month)
C (270) c (12) c (47) c (59) C (235) C (234)
51.07 0.79 60.52 2.60 37.23 45.47
10.15 11.97 12.17 18.24 23.32 58.36
c (2)
0.07 1.29 3.70 2.81 1.02 2.50
(number of ISP) Republic of Korea Sri Lanka Singapore China Australia Japan Cambodia Marshal1 Islands Maldives Papua New Guinea Tuvalu Kiribati
c (2)
M (1) M (1) M (1)
Part Three: ICT Policy Training Module
J
Need for competition law
Competition Law, if any
- Aims at maintaining and enhancing the competition - Is an essential part of the economic constitution of a free market economy and - Should, as much as possible, apply to all market transactions and to all entities engaged in commercial transactions irrespective of ownership or legal form
J
General law vs. Sector-specific law
No a single rule or practice whether to combine or separate between general competition laws covering the overall markets & specific competition laws focusing on the ICT sectors: e.g.,
- United Kingdom & Germany: general competition law (e.g., the Fair Trading Act and the Competition Act), under which telecommunications regulators have a range of powers. Some argue that these powers are not sufficient to tackle an industry such as telecommunications. - Hong Kong, China: sector specific competition rules and conditions were adopted in the Telecommunications Ordinance (2000).
- India: Competition Act (2002).
J Need for sector-specific competition authority 0
To protect public interest on a full-time basis, where there is a market of the size and significance, supplied by a vertically integrated, highly dominant company, with large economies of scope and scale and huge sunk costs
0
To provide protection against the abuse of a dominant position and to promote effective competition To help its domestic industry to overcome barriers to entry in others' markets which are very competitive globally
0
0
Specific knowledge and expertise are also required particularly for such areas as licensing & interconnection among various competitors and limited resources (e.g., spectrum) for management & coordination
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J
Role of regulator for competition
United Kingdom: OFTEL has sharper prior controls to prevent dominant operators from indulging an 'anti-competitive' behaviour as well as promote and police competition a
Hong Kong, China: Telecom Authority (OFTA) and Broadcasting Authority (BA) are empowered to prevent 'anti competitive' behaviours in their respective areas
'Anti-Competitive Practice'? "A licensee who engages in conduct which has the purpose or effect of preventing or substantially restricting competition in a telecommunications market" [Hong Kong, China Telecom Ordinance, 20001: i . e . , such behaviours as Agreements to fix the price in a telecommunications market An action preventing or restricting the supply of goods or services to competitors Agreements between licensees to share any telecommunications market between them on agreed geographic or customer lines; and so on
J
Barriers for effective competition
Three major types of barriers among others by incumbent operator(s) recognized in the telecoms markets: e.g., - Dominance advantages
- Control advantages - Structural advantages
Part Three: ICT Policy Training Module
SUMMARY Competition is regarded as
- One of the key reasons to promote and implement liberalization - or 'progressive liberalization' - for telecom sector, whilst IT sector has been competitive from the beginning and - One of the key variables for the growth of sectors proven by IT sector and mobile sector to some extent 'Full and real' competition is yet a long way to go in many developing countries across ICT sectors Monitoring, policing and enforcing penalties against 'anti-competitive' behaviour of dominant players are more challenging and critical than just placing policy or law per se
Licensing and Its Issues
Major Check-list of Licensing Major objective of licensing Roles of PM & regulator for licensing Licensing policy: e.g. , technology-neutral Categories or types of licenses & licensing Licensing criteria Licensing mechanisms Licensing guidelines & conditions License application forms Licensing procedures License fees Period of licensing validity Number of licensees Legal enforcement when violating
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J Major objectives of licensing Allow carriers andlor service providers to provide customers with various choices and quality of services on reasonable prices in liberalized or privatized markets Protect customers from harmful interference and anticompetitive practices from the markets But, avoid any unnecessary burdens for operators and regulators through minimum regulations - i.e., streamlined licensing
J Roles of policy maker & regulator in licensing Regulator
Policy Maker Set a policy: - Decide whether to regulate or liberalize the markets - Decide whether to fix the number of licensees or let markets decide etc.
Implement the policy: - Recommend or Issue the license(s) - Develop guidelines for various issues - Monitor licensees on a day-to-day base etc.
J Licensing policy Scope of licensing policy: e.g., What kind of licenses to be issued: e.g., unified, individual, class etc. Whether to issue licenses for each service (e.g., basic, value-added services etc.) Whether to issue licenses based on technology neutral Whether to limit number of licensees, if necessary How to allocate spectrum, if required
... And so on, depending on country's circumstances
Part Three: ICT Policy Training Module
J Licensing categories or types (1) Hong Kong, China
India
Exclusive license Carrier license - Fixed - Mobile - Space station Class license: e.g. - In-building telecom system - Provision of public wireless local area network services - Terminal equipment
Basic service license Cellular mobile license Radio paging license Internet Value-added service license GMPCS Unified license
J Licensing categories or types (3) - --
Republic of Korea
Malaysia Definition Of 'Class License': "A licence for any or,all persons to conduct a specified activity and may include conditions to which the conduct of that activity shall be subject". In Malaysia
>
>
*
Individual Licenses Content applications service provider Applications service provider Network service provider Network facilities provider Class Licenses (Current) Applications service provider One SP can have multiple licenses
>
>
Facility-based (34): e.g. Local (2) Long-Distance (3) International (3) Leased line (14) Cellular, PCS, GMPCS TRS, Paging, Wireless Data B-WLL, IMT-2000 Non-facility-based (3191) Special (314) Value-added (2,877) (numbers):as of 2002
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J
Licensing categories or types (4) Nepal*
Basic telecom service Mobile telecom service Value-added service (including Internet)
* Nepal's
J
Schedule of Speczfic Commitments in Services WT/ACC/NPL/16/Add.2 28 August 2003, WTO
Licensing criteria India
Hong Kong, China Scale of investment & capacity Financial capability Performance bond Technical soundness & quality of service Proven managerial & technical expertise Implementation schedule Quality of proposal etc.
Licensee should be Indian CO. Foreign equity should not exceed 49 per cent Execution of performance bank guarantee Stipulated network & experience Comply with technical specification, commercial & financial conditions etc.
J Licensing mechanism Case-by-case ad-hoc decision-making on a first-come first-served principle Comparative & qualitative evaluation of bid (i.e., a 'beauty content') among short-listed bidder Comparative hearings Lottery Auction Combination of the above (e.g., an auction among bidders who succeed in the initial beauty contest) Simple register etc .... .
Part Three: ICT Policy Training Module
J
Licensing guidelines & condition (1)
The guidelines & conditions differ in each license
I
Hong Kong, China for FTNS
I
9 External Fixed Telecom Network Service: - Introduction of the scope - Regulatory framework - Terms of licensing arrangement
- Relevant information for applicants re their proposals or applications etc.
J
Licensing guidelines & condition (2) Malaysia for Individual License
p Corporate -
9 Operations
- Numbering plan,
Incorporation Share holding, JV Sole license for activity Compliance with CMA
-
Indemnity
-
Change in license condition
-
electronic addressing, spectrum plan Consumer code Rates Safety measures Charge mechanism License fees
J Licensing guidelines & condition (3)
I Permitted activities 9 Sole license Compliance with the law 9 Compliance with the numbering plan, the electronic addressing plan, and Consumer Codes
Malaysia for Class License
9 Safety measures
Charging mechanism Indemnity p Fees 9 Change of particu.lars of the registration notice
I
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J 1.
Special licensing condition (1)
Obligation to provide Universal Service andtor To Contribute To USF - The licensee shall comply with any determination made on US0 - Contribution to US0 fund - All licensees except Content Application Service Provider (CASP) - Licensees whose annual total revenue exceeds (RM 500,000) - Contribution is determined at 6 per cent of the total weighted net revenue from designated services
J
I 2.
Malaysia
For all individual licensees [Reg. 181
- Notify the Minister of any restructuring or rationalization of the individual's corporate structure
3.
Additional for CASP(1) [Reg. 22(2)]
- Provide local content programmes and those that promote national culture and identity etc.
Special licensing condition (2) Republic of Korea
Contribute to research and development (R&D) determined at certain percentage of the total revenue from licensees; andlor Contribute to the development of national informatization funds determined at certain percentage of the total revenue from licensees etc.
J
License application forms
Hong Kong, China Company structure & financial capability Description of service Technical details of the system Technical support Experience of applicant Compliance with the ITU standards etc.
India Company registration certificate Net worth & experience Annual reports for the last 5 financial years
A comprehensive detailed documents
(
Part Three: ICT Policy Training Module
J
Licensing procedures
Create a team with various expertise by regulator andlor government Draft licensing criteria and conditions by the regulator or government (or with help of the team) Consultations among various interested parties and experts Prepare for the Guidance Note Invite interested applicants for their proposal or applicant Evaluate the proposals or applicants Grant the relevant license(s): e.g. - Individual/basic license: detailed conditions - e.g., in 90 days - Class/value-added license: simple registration - e.g., 24 days (internal) Monitorlvisit licensees on a regular base All these should be timely, efficient & transparent!
J
License fees
There can be three scopes of licensing fees - Cost-recovery - Costs of scare resources consumed by operators - Sharing values of businesses License fees are recommended to cover the administrative costs, except for the optimal use of scarce resources License and its fees should not be burden but, in both principle & practice, to the introduction and development of innovative services and competition Special conditions may apply: e.g., Malaysia & Korea
J
License fees: Example
Application fee
RM 10,000
Registration fee
RM 2,500
Processing fee
RM 50,000
Annual registration
RM 2,500
Annual license fee
0.50 per cent or 0.15 per cent of Gross Annual Turnover (minimum RM 50,000)
Renewal fee Tenure
5 or 10 years
I Malaysia
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J 3 6 Licensinglspectrum fees: Example Country
I
Company
France
Orange SFR
Germany
E-Plus Mobilfunk 0 2 Germany Quam (Group 3G) T-Mobile Deutschland Vodafone D2 H3G IPSE 2000 TIM Vodafone Ornnitel Wind Vodafone K.K. KDDI NTT DoCoMo
7.62 billion 7.67 billion 7.63 billion 7.70 billion 7.63 billion 2.01 billion 2.02 billion 2.00 billion 2.03 billion 2.01 billion Free
KT Freetel LG Telecom SK Telecom
994 million 898 million 994 million
Orange T-Mobile UK Vodafone
6.35 billion 6.44 billion 6.30 billion 9.40 billion
Italy
Japan
Republic of Korea
United Kingdom
I
Price 551 million 551 million
Malaysia: RM 50 million
+ additional fees.
License Date 20 May 2001
31 July 2000
19 October 2000
License Conditions1 Service Status Must offer services to 80 per cent of the population by 2009, 20-year license plus 1 per cent of revenues Services were to start from January 2002 and cover 25 per cent of the population by the end 2003, and 50 per cent by the end of 2005; 20-year license Coverage must extend et regional capitals within 30 months and provincial cities within 60 months; 20-year license
12June 2000
Amidst competing technological standards, Japanese mobile operators already have millions of subscribers and near total national coverage 15 December Republic of Korea's major mobile 2000 operators already have close to 25 August 20.7 million subscribers to high2001 speed services 15 December 2000 26 April 2000 Services must cover 80 per cent of the population by 2008; 20-year license. Hutchison 3G predicts it will have one million subscribers by the end of April
I
Sources: 3G Newsroom, UMTS-Forum, ITU, OFCOM.
J Period of licensing validity Hong Kong, China 0
Carrier licenses are valid for 15 years with a renewal of further period not exceeding 15 years Taking into account the life span of technologies, services or systems etc.
India
Most licenses are valid for 20 years extendible by 10 years at one time Taking into account the investment required and a reasonable return for the investment
Part Three: ICT Policy Training Module
International Telecommunication Union
7. ICT Infrastructure and Access
- 111: RF 2 - spectrum, interconnection, USO, costinglpricing & converged issues ESCAPIITU Regional Training Workshop on Enabling Policies and Regulatory Frameworks for Information and Communication Technology (ICT) Development in the Asia-Pacific Region 5 May 2004 Bangkok, Thailand Dr. Eun-Ju Kim ITU
[email protected]
Agenda = Major Regulatory Frameworks 1030-1200 hours, Regulatory Frameworks I: Independence of Regulator Competition Safeguard Licensing and its Criteria
> > >
1300-1430 hours, Regulatory Frameworks 11: Scarce Resources (e.g., Spectrum, Numbering, etc .) Interconnection Universal Service and Its Funds Costing & Pricing > Others through converged ICT
9 9 9 9
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Scarce Resources: Spectrum
Check-list for radio spectrum/frequency Managementlpolicy of radio spectrum AllotmentlAssignrnent of spectrum at affordable prices for sufficient enough bands Licensing & Pricing of spectrum: entry & usage fees Efficiency and optimization of spectrum with techniques Harmonization of spectrum Meeting future growth requirements
Part Three: ICT Policy Training Module
J Management of scarce spectrum 4.1 Member States shall endeavour to limit the number of frequencies and the spectrum used to the minimum essential to provide in a satisfactory manner the necessary services
4.2 Member States undertake that in assigning frequencies to stations which are capable of causing harmful interference to the services rendered by the stations of another country ... 4.3 Any new assignment or any change of frequency or other basic characteristic of an existing assignment shall be made in such a way as to avoid causing harmful interference to services rendered by stations using frequencies assigned in accordance with the Table of Frequency Allocations .. . Source: ITU, Radio Regulations, Article 4.
J Allocation, Allotment & Assignment Allocation (of a frequency band): Entry in the Table of Frequency Allocations of a given frequency band for the purpose of its use by one or more terrestrial or space radiocommunication services or the radio astronomy service under specified condition: i.e. , frequency distribution to services Allotment (of a radio frequency or its channel): Entry of a designated frequency channel in an agreed plan, adopted by a competent conference, for use by one of more administrations for the [same] purpose above: i.e., frequency distribution to areas1 countries 0
Assignment (same above): Authorization given by an administration for a radio station to use a radio frequency or radio frequency channel under specified conditions: i.e. , frequency distribution to stations
Source: ITU, Radio Regulations, Article 1.
J Management at different levels 0
Allocation (of a frequency band): i.e., frequency distribution to services - atlby ITU
0
Allotment (of a radio frequency or its channel) : i.e., frequency distribution to areaslcountries - atlby ITU
0
Assignment (same above) : i.e., frequency distribution to stations - atlby each country
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J
Method of assignment
For Entry: J J J
First-come first-served base Beauty content Auction etc.
Require fees
For Usage: J
Annual fees per KHz e.g. - US$ O.S/KHz for cellular & WLL in Bangladesh - US$ 0.1IKHz for cellular; US$ 0. l /S/KHz for WLL; US$ 0.008IKHz for WiFI in Philippines
Part Three: ICT Policy Training Module
J
Frequency license related issues
0
Licensees: Telecom carriers, service andlor network operators
0
Allocation method: Beauty contest, auction etc.
0
Pricing: normally for administrative costs (but, auction as done for 3G in Europe)
e.g., Republic Korea
Right: Exclusive right of spectrum utilization 0
Duration of license: less than 20 years
J Station license related issues 0
Licensees: Most of radio stations including fixed, mobile, etc.
0
Principle: Normally first-come first-served
0
Technical criteria: Centre frequency, channel bandwidth, transmitter power, location etc.
0
Expiration date: Less than 5 years
J 0
II
/
e.g., Republic Korea
Class license related issues
Generally issued for ISM bands and devices (e.g., W-LAN, bluetooth, alarm transmitter, remote control etc.) where power of emission is low Require for 'Type Registration' to satisfy technical criteria
\
Korea
/
U
0
Licensed devices share the spectrum
0
Not protected from interference by other radio communication services
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J
I I
I
e.g., GSM frequency assignment status Average GSM bands per op
No. GSM op
Belguim
3
2
X
81.0 MHz
2
Denmark
4
2
X
109.6 MHz
2 X 27.4 MHz
I
France Germany
1
Hungary
I
Ireland
3 4
3 3
1 1
I
2x74.4MHz 2
X
80.0 MHz
2
X
68.6 MHz
2x62.4MHz
1 1
1
X
27.0 MHz
2x24.8MHz 2
X
20.0 MHz
2
X
22.9 MHz
2x20.8MHz
Italy
4
2
X
71.6 MHz
2 X 17.9 MHz
Netherlands
5
2
X
105.8 MHz
2
Spain
3
2
X
64.2 MHz
2 x 2 1 . 4 MHz
Sweden
3
2
X
75.0 MHz
2
Switzerland
3
2
X
79.6 MHz
2 X 26.5 MHz
United Kingdom
4
2
X
105 MHz
2
X
26.3 MHz
China
2
2
X
45.0 MHz
2
X
22.5 MHz
2
X
18.0 MHz
2
X
19.0 MHz
I
( Malaysia
I
Total frequency for GSM
Country
l
Thailand
5
3
(
1
2 x 9 0 . 0 MHz 2
X
57.1 MHz
1
(
X
X
Source: TRAI, India, Average: 2 X 22.5 MHz.
J
Frequency bands for 3GJIMT-2000
3GlIMT services (e.g., mobile Internet) can be provided using any of the ITU approved radio interfaces identified by the ITU Radio Regulations: e.g.,
5 5
1885-2025 MHz 21 10-2200 MHz 806-960 MHz 1710-1885MHz 2500-2690 MHz
21.2 MHz 25.0 MHz
Part Three: ICT Policy Training Module
J
Spectrum licensinglpricing - e.g., 3 6
Country
Company
France
Orange SFR
Germany
E-Plus Mobilfunk 0 2 Germany Quam (Group 3G) T-Mobile Deutschland Vodafone D2 H3G IPSE 2000 TIM Vodafone Ornnitel Wind Vodafone K.K. KDDI NTT DoCoMo
Italy
Japan
Price $
License Date 551 million 20 May 2001 551 million
Republic of Korea
KT Freetel LG Telecom SK Telecom
United Kingdom
Huchison 3G UK mm02 Orange T-Mobile UK Voda fone
Malaysia: RM 50 million
7.62 billion 7.67 billion 7.63 billion 7.70 billion 7.63 billion 2.01 billion 2.02 billion 2.00 billion 2.03 billion 2.01 billion Free
31. July 2000
19 October 2000
License Conditions1 Service Status
Must offer services to 80 per cent of the population by 2009, 20-year license plus 1 per cent of revenues Services were to start from January 2002 and cover 25 per cent of the population by the end 2003, and 50 per cent by the end of 2005; 20-year license Coverage must extend et regional capitals within 30 months and provincial cities within 60 months; 20-year license
Amidst competing technological standards, Japanese mobile operators already have millions of subscribers and near total national coverage 994 million 15 December Republic of Korea's major mobile operators already have close 898 million 2000 to 20.7 million subscribers to 994 million 25 August high-speed services 2001 15 Decembe~ 2000 12 June 2000
6 .g0 billion 6.35 billion 6.44 billion 6.30 billion 9.40 billion
of the population by 2008; 20-year license. Hutchison 3G predicts it will have one million subscribers
+ additional fees
Sources: 3G Newsroom, UMTS-Forum, ITU, OFCOM.
J Efficiency and optimization of spectrum
> With such techniques as: - Synthesized frequency hopping - Tighter frequency re-use pladcell splitting etc.
> With further research & development for new techniques and technologies
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J Harmonization of spectrum For such benefits as: e.g.,
- Economies of scale in manufacturing of equipment - Competitive market for equipment procurement and - Increased spectrum efficiency etc.
J Meeting future growth requirements (1) 0
Countries are working on ways to meet the future needs and growths of scarce spectrum at national and ITU levels: e.g. - Australia: liberalized spectrum management regime with introduction of a combination of 'secondary trading' and administrative incentive pricing: i.e., licence holders are able to sell, lease, repackage and change the use of standard trading units assigned to them
* Services where governments require universal service provision are generally deemed unsuitable for the "second trading (which means that licences can be subsequently traded by buyers and sellers, without necessarily passing through the regulator's hands)". Source: ITU News, No. 3, April 2004, pp. 23-29.
J Meeting future growth requirements (2)
* "License-Exempt
spectrum" means that access to spectrum does not require prior authorization; Any user satisfying certain conditions (e.g., relating to the power of equipment) may have access to the band in question.
Countries are requesting for spectrum to be identified at the international level for new applications and technologies to provide larger markets, economies of scale and international roaming International technical standardization is being developed by the industry, rather than regulatory bodies, especially in 'licence-exempt bands'* A need for coordination at the international level first before countries take decisions was recognized. Otherwise, it could have advserse crossborder effects
Source: ITU News, No. 3, April 2004, pp. 23-29.
Part Three: ICT Policy Training Module
J
Radio Frequency for the Future: 46?
ITU-R Definition A service that provides multimedia information at the speed of 100 Mbps in high mobility through new mobile access around the year of 2010
>
Internet (IPv6) access environment at any time and any place Seamless interconnection with other networks, with high security & QoS 4G further requires for planning/developing
Spectrum, R&D, standard, & service
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J
Importance of Interconnection
Interconnection is a key factor for effective 'competition' in de-regulated or liberalized telecom and now converged ICT sectors for 'connectivity' and 'inter-operability' among competitive networks & services, especially between dominant operators and new entrants including
- Cellular mobile - Wireless LAN - Internet service providers (ISPs) etc.
J Scope of Interconnection 0
Different regimes/countries have different definitions: e.g., Europe "Interconnection means the physical and logical linking of public electronic communications networks used by the same or a different undertaking in order to allow the users of one undertaking to communicate with the users of the same or another undertaking, or to access services provided by another undertaking. Services may be provided by the parties involved or other parties who have access to the network"
Type I Interconnection - Interconnection between network gateways Gateway
Part Three: ICT Policy Training Module
Type I interconnection: e.g., Hong Kong, China
+
Gateways can be toll exchanges, tandem exchanges, local exchanges or dedicated interconnect gateways
+
A point of interconnection (PoI) is a notional point in the mid-point of the link interconnecting the gateways of two networks
+
Interconnection should be made upon the request of any network operator
Type I1 Interconnection - Unbundling of local loop
Network 1
Type I1 interconnection: e.g., Hong Kong, China Interconnection of Network 2 to Network l is possible at any of the points A , B or C Interconnection is only permissible upon the request of the customer at point D to become a direct customer of Network 2 After interconnection, the customer at point D becomes a direct access customer of Network 2 After interconnection, the operator of Network 1 continues to own, maintain and support the local loop
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J
Major Interconnection Principles (1)
Terms of interconnection should be nondiscriminatory: - Between dominant or non-dominant Interconnection should be permitted at any technically feasible point: - If no standard, requesting operator should pay additional costs Interconnection charges: - Should generally be cost based - But, where reciprocal interconnection costs are balanced, may consider 'bill and keep' and 'not cost based' = i.e., simple
J
Major Interconnection Principles (2)
Regulatory guidelines and procedures should be prescribed in advanced to facilitate negotiations Standard terms and procedures should be published for interconnection to dominant operators Interconnection procedures and arrangements should be transparent Interconnection arrangements should encourage sustainable competition Network elements should be unbundled and charged separately Charges relating to universal service should be identified separately and not bundled with interconnection charges Regulator should resolve interconnection disputes quickly and fairly
J
Key interconnection issues (1)
Framework and procedural issues
- Regulatory guidance - Interconnection with incumbents - Standard interconnection terms - Independent and timely dispute resolution - Non discriminatory access to interconnection facilities and services - Access to PSTN networks including planned changes - Treatment of Universal Service, Universal Access or Access Deficit Charges
Part Three: ICT Policy Training Module
J a
Key interconnection issues (2)
Commercial issues - Level and structure of interconnection charges; basis for calculation (i.e., type of costs used to calculate charges, revenue sharing, bill and keep etc.)
- Unbundling of interconnection charges for different network components and related services -
Resale of network facilities and services
- Payment for network modifications to facilitate interconnection -
Confidential Treatment of competitive and customer information
J Key interconnection issues a l
(3)
Technical and Operational Issues - Open network standards and technical compatibility - Location of point of interconnection (PoI) - Access to signaling systems, advanced digital features, billing system, operations support systems (OSS) , call related databases - Access to unbundled network components, including local loops - Equal ease of customer access to competitive networks - Access to numbers and implementation of number portability - Collocation and sharing of infrastructure (e.g., buildings, poles, ducts etc.) - Quality of interconnection, including availability of sufficient interconnection capacity to avoid congestion and to ensure timely provisioning of interconnection services and facilities
J
Source: "Background Paper" At ITU Forum on Private Sector Issues New Delhi, India 24-26 April,
m
Additional interconnection issues (4)
Interconnection is an important consumer issue Reluctance of incumbent operators to provide access to competitors Attempts by the incumbent to provide discriminatory or high-cost interconnect Inclusion of universal service contributions, and perhaps also access deficit contributions, in interconnection charges Inexperience or under dominance of new entrants, inhibiting them from fighting their interconnect battle Inadequately defined legal obligations to interconnect Lack of regulatory safeguards where the incumbent fixed carriers are permitted to operate in mobile markets Inadequately enforced regulatory interconnect regime Grey areas in regulatory regime with respect to related issues, such as carrier selection, number portability, or costing guidelines and Inadequate interconnection arrangements not only impose unnecessary costs and technical problems on operators - they also result in delays, inconvenience and additional costs for business, consumers, and ultimately, for national economies
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J Other interconnection related issues Number Portability: Source: "Background Paper" At ITU Forum on Private Sector Issues New Delhi, India 24-26 April, 2004.
Number portability is, in fact, an interconnect service, which is extremely important to the effectiveness of competition in local, mobile, and free phone services. Without number portability, customers can expect to change their telephone numbers each time they change carriers. In most countries, the issue of implementing number portability is overshadowed by strong economic considerations of moving to a portable number regime.
SUMMARY 1. Operators encouraged to reach commercial agreements through negotiation based on guidelines published by regulator - i.e., 'soft' regulation - in multi-players' ICT sectors 2. Roles of regulators are very critical to:
Ensure rights & obligations between dominant and new operators including ISP Resolve disputes between operators, if any Place a fair and reasonable costing methods Ensure transparency for principles, guidelines on procedures, & publication of interconnection agreements made with dominant operators etc.
Universal Service and Its Funds
Part Three: ICT Policy Training Module
Check-list for Universal Service J
Definitions & evolution of Universal Service/Access
J
Universal Service: Goals & Practices
J Universal Service: Key issues J
Ways of reaching Universal Service
J
Ways of raising US0 funds with examples
J
ITU's Universal Access Guidelines
c In principle: >
4 Definitions of Universal Service/Access Universal Service: providing individual household connections to public telecom/ICT network & service. Universal Access: ensuring that all people have reasonable means to access a publicly available telephone1Internet in their community through shared use of lines or terminals (e.g., public payphones, community telecentres, teleboutiques or community Internet access centres). But, the scopelpractice of Universal Service differs in each county: e.g., Access to from 'basic telephony' in one-day reaching on foots, 'village', To 'Internet' by individuals.
J
Evolving scope of 'Universal Access' THE BASIC ACCESS CONTINUUM
Access to basic voice telephony service
r
Access to enhanced emergency services, operator services, and relay services; equal access to long-distance; touchtone Access to data; minimum role of data speed on phone lines Fully digital system end-to-end Two-way broadband service
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J
Universal Service: Goals & Practices
a
Availability
a
Affordability
a
Accessibility
- Initially implemented by monopoly or incumbent operator as an obligation
- Very few countries have achieved universal service1 access goals solely through monopoly operators
J
J
Issues of Universal Service
a
Universal Service policy
a
License conditions
a
Cross subsidies
a
Universal Service Obligation (USO) funds
a
Interconnection levies and access deficit charges
Principle objectives of United States policies
a
Allow full participation in the Information Society
a
Promote economic development
a
Encourage equal access by all segments of the population
a
Promote national political, economic and cultural cohesion Reduce the digital gaps between rural and urban areas; & have and have-nots
Part Three: ICT Policy Training Module
J
Ways of reaching Universal Service
a
'Mobile' is the prime example: More mobile than fixed line subscribers in many countries - i.e., no more rich men's device
a
'Prepaid' makes it affordable
a
'Public' access, through various centres initiated
a
'SMS' even cheaper than voice with a limited e-mail substitute
a
'New andlor accessible technologies' such as VSAT, WiFi etc., suitable for geographical and financial circumstances of countries
J Ways of raising U S 0 funds: Examples (1)
In general:
>
a a
Equitable contribution by all market participants Fixed percentage of designated revenues Incumbent operator as a social obligation
a
Cross subsidy between services: - India, most countries Access Deficit Charge: - United States, Canada Roll out Obligations in License: - Brazil, India
a a
J Ways
of raising U S 0 funds: Examples (2)
a
Government Subsidy - Bidding Approach, Chile, Peru
a
Incumbent's Liability - United Kingdom
a
Other incentives - Sri Lanka ( l rural telephone = 10 normal telephone for the purpose of roll out), one time subsidy of Rs 50,0001 = to 3,000 phones - Special home zone tariffs - Use of cellular phone like Grameen Phone in Bangladesh
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J ITU's Universal Access Guidelines (1) 1. Enabling regulatory environment: Role of governments/regulators Formulate a national policy identifying appropriate and realistic universal access/service objectives Include all citizens, regardless of gender, ethnicity, socio-economic level or geographic location Review its policies, regulations and practices periodically Create incentives for the private sector to extend universal access to communication services Establish a fair and transparent telecom regulatory framework Adopt technologically neutral licensing practices Adopt a framework of interconnection rates linked to costs Reduce regulatory burdens to lower the costs of services Promote competition in the provision of a full range of ICT services to increase access, affordability , availability and use of ICTs
1
Source: Doc. 3 1, ITU GSR, Geneva 8-911212003.
J ITU's Universal Access Guidelines (2) 2. Access to information & communication infrastructures Provide services in a competitive framework using new technologies that offer both innovative services and affordable pricing options to a wide range of end users Promote affordable ICT equipment including national manufacturing of IT equipment, reduced customs tariffs and duties, and end-user loans to foster affordability of ICT equipments A full range of public access options to be developed (e.g., telecentres)
Local input into projects to increase their long-term financial sustainability Educate local people on the benefits of ICTs and their use to increase their longterm financial sustainability
J ITU's
Universal Access Guidelines (3)
3. Finance and management of universal access policy 0
Universal service funds can be financed by a broad range of market players, managed by neutral bodies such as regulators, and be used to kick-start public access projects that meet the needs of the local community
0
Governments may consider a full range of other financing mechanisms including tax incentives for ICT providers and end users Competitive minimum subsidy auctions could be used, as an option, to reduce the amount of financing necessary for public access projects financed by a universal service fund
0
Public access projects can be designed to achieve long-term financial selfsustainability, exp. Where consideration is given to innovative low-cost technologies
Part Three: ICT Policy Training Module
SUMMARY Universal Service/Access to ICT is today not only 'human right' but also a critical prerequisite of daily lives for individuals, efficient management for private sector, and good governances for public sectors Regulators, thus, are encouraged to: - Monitor and review continuously evolving its definition and scope in each country over the times along with technological development or innovation and - Ensure appropriate US0 funds, which are fair to all through policy & regulatory frameworks
Costing & Pricing
Check-list for Costing & Pricing Importance of costing & pricing with 2 scenarios Reasons of costing & pricing Correlation of costs, prices, & markets Major costing & pricing mechanisms with examples Pricing information availability Major guidelines of pricing Major trends of pricing in ICT services ITU's R&D on costing & pricing
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
J Importance of costinglpricing 0 0 0 0
Affordability for customers Efficiency in industries' production Efficient allocation of economic resources in all of costinglpricing chain The "Wealth" of governrnents/nations and companies
I
G-h
Win
+ Win + Win Game, when it is right I
J Two scenarios of costing
A high-level of levies including one of more of license entry fee, annual license fee, spectrum usage charges, U S 0 funds, Access Deficit Charges, import duties on infrastructure equipment and handsets, excise duties, sales & service tax, VAT etc. Most of these, with the exception of sales and service tax, become cost elements of the service even before the end-users start using the service If the costs are high, price (e.g., end-user tariffs) would be unavoidably high and would result in - Seriously retarding growth of telecom1ICT usage and penetrationlaccess; and - Lowering revenues to Government from the service tax
All the pre-usage costs could be kept low as practically acceptable The costs cover only Government's cost of administering and regulating the sector including the important costs (e.g., USO) This would result in Lowering end-user tariffs with affordability Growing telecom1ICT infrastructure and services - i.e., economic wealth Increasing tax revenues from industries to the Government and Eventually, improving quality of lives
Part Three: ICT Policy Training Module
J Reasons for costinglpricing a
Consumer protection
a
Prevention from anti-competitive pricing from monopoly or incumbent as well as subsidy, if any
a
Suppot Universal Service and its funds
a
Set up cost-based benchmarks for reasonable pricing
J Correlations among cost, price, demand and markets PRICE
-
=
End-user tariffs
PRICE > COST = PROFIT
- COST > PRICE
=
LOSS, DEFICIT
PRICE vs. Demand: e.g., - When price decreases, Demand increases
-
When price increases, Demand decreases
Market
=
Interaction of SUPPLY and DEMAND
J Major costinglpricing mechanisms 1. Reasonable Return on Investment -
Total operations; specific services
2. Price Caps: e.g., RPI-X in the United Kingdom - Total operations; specific services or prices 3. Benchmarking
4. Long Run Incremental Cost (LRIC): United States and Europe
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
3. Benchmarking? Before using the Benchmarking, compare consumer price levels between similar economies in e.g. , the Asia-Pacific Region Benchmarking : - Can complement cost studies as it is quicker, easier and more dynamic (responding to market trends) - Is especially useful in a competitive but regulated market (e.g. , to assist in gaining regulatory approval for tariff restructuring)
4. Long Run Incremental Cost (LRIC)? Advocacy costing delays market development LRIC is neither scientific nor precise LRIC is a conceptual tool for calculating reasonable cost benchmarks Simplicity and transparency are essential Success requires that study parametres be negotiated and agreed in advance
J Pricing information availability: Pricing information is important and useful for operators as well as customers. Example to get pricing information in the United Kingdom
-
Mobile telephone data are available from OFTEL (now, OFCOM), the United Kingdom regulator
- Quarterly series, which include calling minutes, new connections, number of subscribers and revenues for each of the competing operators (Vodaphone, Cellnet, One20ne and Orange) are issued with a time lag of about 8 months
-
Shortly after quarterly results are tabulated, each operator usually issues a press release detailing its gains in net subscriptions split by contract and prepaid TOTAL RESEARCH
Teligen
Part Three: ICT Policy Training Module
Quality of Service: Scope Six benchmarks for the performance parametres among SATRC: e.g. l. On call completion rate
2. Fault incidence 3. Fault clearance rate 4. Time for providing the connection after the payment 5. Waiting list clearance and
6. Disposal of billing complaints, for ICT services such as Mobile and VoIP Source: APT, SATRC Action Plan 2004.
Quality of Service = Consumer Protection: Ways of Implementation 1. Pledging, measuring, reporting & monitoring of performance through performance indicators 2. Publishing statistics on the number of customer complaints 3. Metering & billing accuracy 4. Undertaking customer satisfaction survey
'Code of Practice' for contract practices 2. Industry practice for customer services 'Code of Practice' for protection of customer information 4. Enforcement of section 7M of the Telecom Ordinance 1.
1
e.g., OFTA, Hong Kong, China.
Information Technology Agreement (ITA) During the Singapore Ministerial Conference of the WTO, a proposal for the expansion of world trade in information technology products was adopted vide the "Ministerial Declaration on Trade in Information Technology Products" dated 1 3 ' ~ December l996 The objective of the Agreement is to bring down tariffs on IT items in stages to zero level by a specified year The updated list of products proposed to be covered under ITA I1 includes a few consumer electronic items and certain security related products The agreement became effective once the number of countries joining the agreement represent 90 per cent of the trade in information technology products. Other WTO Members could opt to join the agreement as a participant Source: http: //cornmerce.nic. dwtoit-2. htm.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Customs: Rules & Procedures Customs & its procedures in most countries are governed by the customs law(s) of the country or region like EU
The import levies to be paid (e.g., customs duty based on value, VAT, excise duties) are specified in the customs tariffs or excise laws at national/regional levels Special arrangements in the form of customs preferences with the countries or regions concerned Unilateral customs exemptions can be granted to the developing countries, based on the certificated origin of the goods Detailed customs procedure, as an example, for ASEAN countries at http://www. aseansec.org/economic/customs/custproe.htm
Simplified and transparent customs rules and procedures within reasonable time period will enable operational & business environment
Part Three: ICT Policy Training Module
'Self- or Soft-regulations': e.g., Code of Practices Various Socio-Economic Development Issues - e.g. , disabled, consumers, Privacy gender etc., - Can be also Dealt with Soft-regulations Such as "Code of Practices"
Code of Practice on the Provision of Telecommunication Services for the Elderly and People with Disability: OFTA, Hong Kong, China: http://www .ofta.gov. hkladcornmlucaclpaperluc99p5.html Code of practice for protection of Consumer Information 0
Code of Practice for Contract
New & emerging laws : 'Hard-regulation' governing misuse of ICT & Cybercrime e.g. Increasing Misuse of ICT & Cybercrimes e.g., - Virus - Spam - Fraud - Porn etc., led Many countries & regions To enact More 'hard-regulation' In free & open IT sector
Asia-Pacific: Penal Legislation on Computer Crimes Australia: Cybercrime Act 2001, Spam Bill 2003 Canada: Computer related offences found in the 1998 Criminal Code of Canada CIS & Baltic: Responsibility for Computer Crimes EU: E-Commerce Directive EU: E-Privacy Directive EU: Telecommunications Privacy Directive Singapore: Computer Misuse Act, Spam Act Malaysia: Computer Crime Act, 1997 United States: Final Bill-Spam Act of 2003, Computer Crime Law (Texas); Spam Laws (Virginia)
Conclusion 0
ICT Policies and Regulations:
-
Can play a critical role to promote the growth of industry and to improve quality of individuals' lives When they are implemented in a non-discriminatory, efficient, and transparent manner with clear guidelines and
-
When they are playing not as a burden for industry - esp., entrants - but as a carrot for their innovation and competition But, should be 'means' or 'safeguard' rather than 'goal' or 'burden' for healthy development of ICT infrastructure and applications to have affordable access as well as for bridging the widening digital gaps not only between countries but also within countries
How to use the means successfully is subject to each country's human resources & political will/stability.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
For more information
>
For updated information about ICT policy & regulatory issues: http: Ilwww. itu. int1ITU-D/treg/Events/Seminarsl 2004/Bangkok/index. htrnl
>
For more in-depth regulatory modules: http: Ilwww .ofta.gov. hklframesetlhome~index~eng .html
9 For more updated information about spectrum, interconnection, & cost-levies: http:llwww .itu. intlITU-Dlpartnersl EventsINew-Delhi-2004lindex. html
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Policies Telecom
Country
ITIICT
Bangladesh
National Telecommunications Policy (March 1998)
National ICT Policy (2002)
Nepal
Telecom Policy (1999 & 2004)
National IT Policy (2000)
Bhutan
-
ICT Policy (Draft)
India
New Telecom Policy (1999)
National IT Task Force (1999): SW, HW, industry policies
Philippines -
1various Telecoms Policies
I National IT Plan (2001)
Sri Lanka
National Telecom Policy (2000)
ICT Policy & Action Plan (2002)
Viet Nam
Telecom Policy (2005)
ICT Policy (2000 & 2005)
Thailand
n.a.
- IT 2010 (2001) - National ICT Master Plan (2002)
China
10h 5 year Development Plan
Inc. Information Industry (2000)
Malaysia
-
Vision 2020
Republic of Korea
Telecom Policy with a vision for information society started from 1980s
IC White Paper (2001), Internet Policy (2002), Korea's IT Policy (2002), e-Korea Vision 2006
Part Three: ICT Policy Training Module
Laws Radiocommunication
Nepal Bhutan
Radio Broadcasting Act (1992) Radio Act (1957)
Telecom Act 1997 Telecom Act 1999
India
Philippines
1885 & 2004
Wireless Telegraphy Act 1933
Telecom Policy Act 1995
Radio Control Law
1 Sri Lanka
Telecom Act 1991
Viet Nam
Ordinance on Posts & Telecommunications Telecom Act (2002) Regulations on Telecom Communications & Multimedia Act 1988 Telecom Basic Act
Thailand China Malaysia Republic of Korea
Telecom Act 1991 SLBC Act 1979
Multimedia Act 1988
I
ITIICT
I
IT (E-Transaction) Act (Draft)
I Digital Signature Act (Draft) ICT & Media Act (Draft) 2004 - IT Act 2000 - Draft Communication Convergence Bill 2000 - E-Commerce Act - CICT Act - Draft Convergence Bill - ICT Act (2003) - Draft Computer Crimes Bill - E-Transaction Bill Telecommunications
- Digital Signature Act
Policy makers Telecom
Broadcasting
1T:ICT
Bangladesh
MPT
MO1
MS1CT:PM's 0
Nepal
MOIC
MOIC
MOST
Bhutan
MIC
MIC
MIC
India
MCIT
MIB
MCIT
Philippines
CICT
CICT
CICT
Sri Lanka
MPT
-
PM's office
Viet Nam
MPT
MCI: Culture & I
MST
Thailand
MICT
Office of PM
MICT
M11
State Admin of Radio, Film, TV
M11
MEWC
MEWC
MEWCJMST
MIC
MO1
MIC
Country
China Malaysia Republic of Korea
I
I
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Regulators Country
Telecom
Broadcasting
IT
Bangladesh
BTRC
MO1
BTRC
Nepal
NTA
MOIC
MOST
Bhutan
BCA
BCA
BC A
India
TRAI
TRAI
No
Philippines
NTC
Optical Media Board, NTC
CICT
Sri Lanka
TRC
-
ICTA
Viet Narn
MPT
-
MPT
Thailand
NTC (TBF)
NBC
MICT
M11
State Admin of Radio, Film, TV
M11
MCMC
MCMC
MCMC
KCC
KBC
KCC
China Malaysia Republic of Korea
Competitions Fixed
Mobile
ISP
Bangladesh
Yes (limited)
Yes
Yes
Nepal
Yes (limited)
-
Yes
Bhutan
No
No
No
India
Yes
Yes
Yes
Philippines
Yes
Yes
Yes
Sri Lanka
Yes
Yes
Yes
Viet Nam
Yes
Yes
Yes
Thailand
Yes
Yes
Yes
China
Yes
Yes
Yes
Malaysia
Yes
Yes
Yes
Republic of Korea
Yes
Yes
Yes
Country
Part Three: ICT Policy Training Module
Interconnection Country
Agreement
Method of Charges
Bangladesh Nepal Bhutan
1 Interim
I No need (monopoly)
'Bill & Keep' and Revenue sharing
I Revenue sharing
I-
India
Yes, among operators first
Cost & Usage-Based, and ADC
Philippines
Yes, among operators
Cost-Based
Sri Lanka Viet Nam Thailand
I yes
I Yes, between public networks I n.a.
I cost-~ased
I Cost-Based & 'Bill & Keep'
(
n.a.
China
Yes
Cost-Based
Malaysia
Yes
Cost-Based
Republic of Korea
Yes
Cost-Based
Licensing categories & fees Country Bangladesh
Categories Facility & Service-Based
Nepal
Service-Based
Bhutan India
FacilityINon-Facility Service-Based
Philippines
Service-Based
Sri Lanka
Service-Based Facility & Service-Based
Viet Nam Thailand China
Service-Based Service-Based (Basic & VA)
Malaysia
TechlService-Neutral
Republic of Korea
Facility & Service-Based
Fees Entry & Annual fees - Spectrum usage fees - Application,
for fixed, WLL & ISP; USO; Spectrum usage - 'X' percentage of annual income - Entry + Annual: revenue sharing (5-10 per cent inc., USO) - Spectrum usage fees - Entry: importlposseslconstruct & radio station - Annual: supervision & spectrum usages fees - Fees
- Entry
fees to cover adrnin cost
n.a. No license fees - Entry: Rh4 50,000 (Registration); Rh4 2,500 (Class) - Annual: 0.5 per cent or 0.15 per cent of GAT; Spectrum usage - Entry & annual fees of 0.5 per cent revenue spectrum - Social costs (e.g., R&D, ICT development)
+
1 I
I I I
Part Three: ICT Policy Training Module
Universal service Country
Who - funds
Scope
How much - funds
Bangladesh
Telecom services to villages by 2005
No particular fund2
5 per cent of network capacity in rural areas by operators
Nepal
Only basic telephony
Service providers
2 per cent of revenue
Bhutan
number of connections different from urban & rural
-
-
India
'X'
- Basic telephony in village; - 2"d phone in village of 2,000 - PTIC (teleinfo), HPTIC A minimum set of affordable & quality coms services accessible to all residents in communities
Viet Nam
-
l ~ p ~ ~ l e cservice om providers
5 per cent of AGR included in license fee
Under study
Under study
6 per cent of weighted net revenue
- Basic telephony in rural - Internet at every school
China
No definition yet
Malaysia
Under-served areas
NFP, NSP, ASP, & not CASP
Republic of Korea
All end-users anytime, anywhere at an affordable price
MIC
Pricing Decision-maker
Country
Methods
Bangladesh
Operators propose; BTRC approves
Retail rates
Nepal
NTA
Retail index - X
Bhutan
BCA
Perceived affordability, near-costs, and revenue requirements
-
Cost-based - TRAI for rural fixed line
(rentals, domestic mobile roaming)
Phi1ippines Viet Nam
I NTC
MPT inputs from operators
Rate based regulation Cost-based pricing for Significant Market Power (SMP) only (with FDC methods) -
Cost based considering affordability socio-economic development Malaysia
MCMC
Republic of Korea
MIC inputs from operators
Long Run Incremental Cost (LRIC )
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Quality of Service Country
Bangladesh
I
I
Criteria
Service blockage, call completion ratio, faults per 100 lines etc. - -
Nepal
Number of all-drops, any echo in voice telephony, speed of access to and use of Internet.
Bhutan
'X' per cent call completion ratio on any given routes and the speed of access for Internet.
India
Many parameters specified in the regulations issued by TRAI.
Phi1ippines
A set of standards set by NTC: poor service, erroneous billings, lost/stolen equipment, fraud etc.
Viet Nam
Compatibility for equipment; testing network quality.
Thailand
-
China
A set of ruleslstandards specified in the telecom regulation.
Malaysia
Billing performance, end-point service availability etc.
Republic of Korea
I
-
Monitoring and Enforcement
I Country Bangladesh
I Nepal
I Bhutan Philippines
Monitoring
According to complaints Complaints and public hearings
I Thailand I Republic of Korea
I Revoke license but no penalties Penalties
- Operators: periodical report -TRAI: periodic surveys for QoS
Penalties & revoke
Regular monitoring spectrum
Fines, suspension & cancellation of licenses, exclusion from applying for new licenses, forfeiture of bonds etc.
Monitor telecom, frequency,
Revoke
& Internet
Regular monitoring
I Malaysia
Fine, suspend and cancellation of license
Complaints & regular check-up
& complaints
Viet Nam
Enforcement, when violating
Timely visit licensees Regular monitoring
Legal penalties differing from each services
I Revoke and suspend
1 Fines, revoke license with penalties
Part Three: ICT Policy Training Module
HWlSW Industry & Consumer Issues
I I
I
I
I
Country
Industry
Consumers
Bangladesh
HW & SW: Week
Week
Nepal
HW & SW: Week
Week
Bhutan
I
HW & S W : Week
I
Week
India
HW: Medium & SW: Strong
Medium
Philippines
HW: Medium & SW: Medium
Medium
Sri Lanka
HW: Medium & SW: Week (?)
Medium
Viet Nam
HW: Medium & SW: Strong
Medium
Thailand China Malaysia Republic of Korea
I I
I
HW: Medium & SW: Medium HW: Strong & SW: Medium HW: Medium & SW: Medium Industry Forum
I 1
I
HW: Strong & SW: Strong Industry Forum
Medium Medium Strong Strong
ICT status V. Econo-Politics
Countries with ICT development (H-L)
Economic Policy GDP & size of economy (H-L)
+
+
Republic of Korea (H) Planned early market economy; progressive liberalization; Malaysia (M) competition: (H-M) Thailand (M) China (M-L) Viet Nam (L)
Planned + recent market economy; limited competition: (L-M)
Political Factor Authoritarian toward democratic regime over decades Socialist regime combined with market economy
Philippines (M-L) India (L) Sri Lanka (L)
Liberal market economy; competition: (L)
Democratic regime
Bhutan (L) Nepal (L) Bangladesh (L)
State-owned teleco; limited or no competition: (L)
Political instability
1 1
1
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Evaluation (1) 1. Most of countries have already telecom andlor ITIICT policies influenced by either their internal needs or external pushes 2.
Difference between 'external' & 'internal' driven policy: i.e. , countries with externally driven policy have not realized development & growth of ICT infrastructure & access; The needs, means & determination should come from each country itself
3.
Having policies, laws, & regulatory frameworks alone is neither the critical nor the only factor for their development of K T : i.e., most of countries have their own regulatory frameworks
4.
Freelopen market policy or fulllsudden liberalization alone has not attributed to the development of ICT in the most economies of ASP region: i.e., the success is based on a combination of socio-economic wealth and size of economy, econo-political regime, and most of all efficient management by local manpower
Evaluation (2) 'Econo-political will & stability' has contributed to the overall growth & policy implementation in the ICT sector 'Efficient implementation - i.e., management or governance - with streamlined and transparent PROCEDURES' are more critical to promote development of ICT industry and meet customers' expectation and Last but not least, 'Human Resource Development' for country's own expertise is the very critical factor for the development in a longer-term to be independent from external consultancies and experts eventually
Recommendations 1. Ensure political vision, will, & stability for information society 2. Develop policy and regulations appropriate for your own country's circumstances and needs 3. Ensure efficient implementation - i.e., managementlgovernance - of the policy and regulations with streamlined PROCEDURES 4. Develop, maintain, & upgrade human resources & expertise constantly in the fast evolving and converging ICT sector and 5. Learn lessons from other countries' experience and even failures (refer to all the tables from survey)
Part Three: ICT Policy Training Module
ACRONYMS & ABBREVIATIONS ADC DSL GDP GSM ICT IP ISP ITU LRIC MCMC MEWC MIC/MICT/MOIC MO1 MPT MST NTC QoS SATRC TRAI USA USF
us0
VoIP WLL WTO
Access Deficit Charges Digital Subscriber Line Gross Domestic Product Global System for Mobile Communications Information and Communication Technology Internet Protocol Internet Service Provider International Telecommunication Union Long Run Incremental Cost Malaysian Communications and Multimedia Commission Ministry of Energy, Water and Communications, Malaysia Ministry of Information & Communication/Technology Ministry of Information Ministry of Post & Telecommunication Ministry of Science & Technology National Telecommunication Commission, Philippine Quality of Service South Asian Telecommunications Regulators' Council Telecom Regulatory Authority of India Universal Service Access Universal Service Fund Universal Service Obligation Voice over Internet Protocol Wireless Local Loop World Trade Organization
Part Three: ICT Policy Training Module
To evolve a suitable mechanism to register private training institutions without curbing their freedom to innovate To evolve suitable policies for computer donations (tax-free), tax and custom exemptions on the importation of ICT equipment To use existing institutional resources more intensively To adopt a suitably phased programmes of introduction of computer education in schools To experiment with different models of utilization of ICT in education; and ICT use to plan, teach and assess academic lessons To encourage the use of broadcast media for education (distance learning, TV education) To provide suitable tax incentives to institutions engaged in teaching and higher learning Ample human resources on ICT are considered to be critical for the success of each country and the Asia-Pacific region. The workshop recognized the need for training programmes conducted through the public education system, in higher education, for vocational, specialized, and non-formal education; training to government employees, for SMEs and micro-enterprises, in rural areas, and training by the private sector to their employees and clients. The workshop also emphasized the need to promote and adopt e-learning and distance learning initiatives as means to enhance and facilitate education and training.
Session 8: Human Resources Development
Good Practices in Information and Communication Technoloev Policies in Asia and the Pacific
Dramatic Changes in HR due to ICT Employment patterns W Can be location-independent W HR a global resource W Outsourcing and offshore activity Skills sets needed Extremely rapid and continuous change; thus, very challenging ICT skills needed in all professions Higher levels of competency required Opportunities Especially for developing countries
Global Scenario Growing market for ICT products and services Growth in e-commerce Declining trend in enrolment for IT in developed countries Global gap between demand and supply
Asia-Pacific Perspective: Factors causing increasing Demand-Supply Gap Attrition of highly qualified human resources to developed countries Inability of the conventional education system (technical and higher education) to keep pace with the demand W
Rapid growth in the domestic economy: private sector needs, e-government
W
Increase in ICT exports
W
Represents an opportunity to Asia-Pacific countries, but there is a need for systematic planning and action to create the required human resources in the region
W
Many have initiated steps to address the gap, countries such as China, India, Malaysia, Philippines
-
products or services
Part Three: ICT Policy Training Module
Critical Problems Encountered Non-availability of a sufficient number of qualified, trained teachers M
Lack of adequate infrastructure (telecomm, bandwidth, computers, distance learning equipment) Access to educational materials, libraries, etc.
M
Lack of adequate and timely data
M
Countries have not systematically analyzed the HR demand-supply scenario for the ICT sector
Lack of teachers caused by ... M
Shortage has led exodus of teachers from educational institutions to industry Higher industry salaries, especially due to shortage
Three Imperatives for Government It is necessary to use ICT for teaching in schools, colleges and other educational institutions in order to improve quality and to overcome the shortage of teachers Government-funded initiatives have serious limitations because of various factors and It is necessary to create an appropriate framework for the involvement of the private sector and to attract non-government funding
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Roles of Government Needs to develop a vision of the country's role in the global IT human resources market (to be developed jointly with private sector) H
To come up with an IT education master plan (Singapore)
W
To liberalize the education sector (for example, regulations on establishment, syllabi, number of books, qualifications of teacher, licensure exams)
W
To enable private investment in and loan funding for higher and technical education
H
To make strategic investments that cannot be done by industry
To take the lead in the creation of high-quality, interactive teaching material, utilizing the private sector as much as possible To establish the necessary institutional mechanisms to certify educational content To evolve a suitable policy framework for telecommunications to make connectivity available at affordable or subsidized cost to educational institutions To encourage R&D and innovation in the use of wireless broadband technologies in education, as this could greatly help remote areas To effectively complement government and private sector spending to create front-end infrastructure such as computers, network resources and facilitators
To encourage language technology research that aims at making network resources and content language-neutral To plan and implement a project aimed at retraining existing teachers To evolve a suitable mechanism to register private training institutions without curbing their freedom to innovate To evolve suitable policies for computer donations (tax-free), tax and custom exemptions on the importation of ICT equipment
Part Three: ICT Policy Training Module
W
To use existing institutional resources more intensively
W
To adopt a suitably phased programmes of introduction of computer education in schools
W
To experiment with different models of utilization of ICT in education; and ICT use to plan, teach and assess academic lessons
W
To encourage the use of broadcast media for education (distance learning, TV education)
W
To provide suitable tax incentives to institutions engaged in teaching and higher learning
Role of Private Sector For countries that have liberalized education, private institutions have come up fairly rapidly W
Greater collaboration between industry and educational institutions Microsoft, Motorola, Cisco, IBM, Intel's Teach to the Future Help develop standards in ICT training
Possible National and Regional Level Incentives
~
A proper assessment of the demand-supply gap in human resources for the IT sector W
Development of high-quality digital training and educational content Collaboration for teachers' training Collaboration in language technology research
W
Experience sharing in different PPP models
W
Experience in the liberalization of education policy
28 1
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Use of ICT for HRD Software-based learning programmes Distance-learning
Policies with Shorter Lead Time Policies needed to produce immediate or near-term impact when a significant shortage exists Difficult to generate such policies for high-qualification workers
Import of IT Workers Issuance of immigration visas to attract foreign ICT professionals Examples include United States, Germany, United Kingdom Some regard this as the best quick fix for a shortage This policy aggravates discrepancies between poorer countries and affluent countries. Poor countries find it hard to attract ICT workers
Part Three: ICT Policy Training Module
Retraining of Current Workers Solves problem by increasing the productivity of current workers However, many individual companies do not have any incentive in providing such training to their employees, considering the expenses involved. High-level of competition and short product cycles make it tough for companies to maintain their staff Companies worry that workers will leave after receiving training
Conversion Training for Unemployed and non-IT Workers Politically tempting: solving 2 problems, unemployment and ICT skills shortage However, experience shows that the effectiveness of this policy is rather limited, particularly for skills that require significant amount of knowledge and creativity
Subsidies For private learning centres and short-courses programmes Non-degree and short-term programmes very popular Limits to the knowledge that this type of education can offer Too much focus on this could distort the national education system
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Promotion of Certificate Programmes Many countries have a national skills certificate programmes Many are outdated and managed inefficiently May be better to promote private and vendor certificates programme
Policies with Longer Lead Times Increase in school sizes W
Can easily degrade quality of education
Revision of School Criteria Boosting awareness of IT careers
Possible Programmes Training through the Public Education System Training in Higher Education Vocational, Specialized and non-formal sector training Training to Government Employees Training for SMEs and Micro-enterprises Training in Rural Areas Training by the Private Sector to Employees and Clients Looking at possible gender exclusion issues How to incentivize private sector to be become involved in human resources development W Various schemes W Tax breaks Low interest loans for HRD and PC or ICT related purchases Mobility of ICT workers
Part Three: ICT Policy Training Module
Group Discussion on the Possible Programmes Current situation in your country Possible policy initiatives W
Do you agree with the "roles of government" slides?
W
Additional suggestions
Possible projects for each programme Brainstorm as much W
Prioritize (discuss criteria)
Thank you! Jay Sabido Consultant for Information, Communication and Space Technology Division, ESCAP
[email protected]
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
MODULES 9 AND 10: E-BUSINESS AND E-FINANCE The ESCAP Regional Advisor on ICT policies and strategies combined the session on e-business and e-finance to be able to cover the whole spectrum in an integrated manner. The key elements of her presentation on electronic business were (1) ICT deployment in the non ICT sector, (2) ICT incubators, (3) ICT as a sector, (4) Public Private Partnerships and E-Finance. ICT is a tool that can greatly enhance the competitiveness of companies and if deployed effectively, can greatly reduce transaction costs. Using Porters' model of the value chain the RA emphasized that ICT deployment, including high end applications such as e-commerce, e-business and e-market requires a change of mindset not only at the front end of the chain but throughout all layers. She indicated that many companies, especially small and medium sized enterprises in developing countries or countries in transition, find it difficult to integrate ICT into their business processes. Investment and running costs and the lack of overall entrepreneurial and managerial skill prove to be major obstacles. The government can facilitate and stimulate ICT deployment by providing incentives for ICT investment and by facilitating opportunities for continuous learning. The core value that cuts across all issues related to e-business is the joint effort between government and the private sector to build trust between the different players and of end-users. The RA used the application and promotion of CMM and IS0 certification as examples of how companies can develop a reputation of trust with their customers. The RA introduced the principle of incubators as an important tool in stimulating ICT deployment but also as part of the development of a national ICT Industry. She emphasized the need to run the incubator as a business, to encourage cross fertilization between research institutes, universities, start up companies and existing (larger) players in the ICT market and to ensure that companies do graduate from the incubator status. Additionally she indicated that incubators needs substantive resources and time to become self sustainable. In conclusion the Regional Advisor introduced the Finnish Innovation model as an example. Many countries consider the ICT sector as an opportunity to attract FDI and to export ICT related services. By using the Offshore Evaluation Model (A.T. Kearney, 2004) and the Transparency International Corruption Perceptions Index 2002, the Regional Advisor stressed the importance of stability, transparency and government facilitation in ICT export and the attraction of ICT FDI. Trade Facilitation and Trade Promotion are important components of a governments' strategy to attract off shoring companies to a country and provide competitive edge on top of advantages such as low labour costs, skilled human resources base, digital and physical infrastructure and cost of business processes. She concluded her presentation on the introduction of a variety of e-finance applications. The core element of successful application of on line financial transaction is consumer trust. This requires a change in mindset in customers which can be encouraged through the provision of data and transaction security, user privacy, consumer protection and the provision of transparent and accessible on- or offline dispute resolution opportunities. In closure the Regional Advisor acknowledged the complexity of e-business and encouraged governments to allow the evolutionary process time, to use existing structures and networks as much as possible and to work closely with all involved.
Part Three: ICT Policy Training Module
The following were noted by the Meeting as relevant issues for promoting e-businesses to flourish: Incentives for Businesses, Encouraging Private Sector Investment Policies specifically to help in developing ICT Industries Promoting Fair Competition Enhancing Entrepreneurship Trade Policies Taxation Building Trust and Confidence E-Payment Schemes Financing Schemes for Rural Connectivity, Entrepreneurship, SMEs and micro-enterprises
ICT private sector development and business automation
Margreet van Doodewaard Regional Advisor ICT Policies and Strategies ESCAP
Introduction 0
ICT as a business tool
0
ICT Incubators
0
ICT as a sector Private Public Partnerships Online Financial Services
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Part I: ICT as a business tool
What is a company? A company is an organization of which all assets are owned by one or more Individuals or institutions. The main objective of a company is shareholder satisfaction. This usually means: Make profit! ! !
Porter and ICT Improve management
I
Infrastructure
Increase efficiency
\
\ Increase profit
Primary Activities
Increase productivity
Increase competitiveness
Part Three: ICT Policy Training Module
.
Stages of K T development: CMM
1 1
:
:
Ad HOC
Individual
Defined m R~~~~~~~~~ ;. U process is ; documented, Basic pro,ect . standardized
.
i management processes in place.
i
i can do again
;
; i
I
and integratrA
Optirnizing i Continuous i Improvement i : IT Process : qn.4 n r n - d x n ~ t o Based on i : rL.IUUbw . U"deIStOCd i feedback and i i and : piloting ; : Controlled. innovative j : : ideas ; : strategical1 -N
E-business and E-market place a
High end application of ICT - E-Commerce
=
the application of transactions through electronic means
- E-business = the application of ICT as a fully integrated business tool in all facets of Porters' business model - E-market place = An Internet system maintained by a company or a consortium that allows individuals or companies to offer products and services or make bids to buy products or services
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Obstacles to ICT deployment in business Low awareness and skill in ICT - Leads to low priority Limited investment power Running costs (incl., telecoms and VAT) Inadequate infrastructure Regulatory environment - Importlexport regulations - Exchange rates - Tax - In transparency, inconsistency, graft
What can government do ? To stimulate ICT deployment: Stimulate formal and informal learning - Increase ICT literacy and professionalism Stimulate professional learning - Encourage international certification Increase awareness and use of ICT in (State Owned) Enterprises Incentives for IT investment - On business level - On citizen level
E-Commerce prerequisites Company mindset - E-commerce must provide competitive edge and lead to increased profits - Company must understand importance of a trustworthy reputation - Company must be aware of the resources required to implement e-commerce Customer rnindset - Needs to trust the company - Needs to trust the technology - Needs to trust the delivery and payment procedure - Needs to trust the product or service - Needs to trust business processes in the country
Part Three: ICT Policv Training; Module
E-Commerce prerequisites 0 0 0 0
Access to affordable broadband connectivity Liable ISPs Legal recognition of electronic contract, payments and dispute resolution Access to expertise in e-commerce - National IT Industry - Management and marketing consultancy Appropriate Banking facilities - National Treasury regulatory framework - http: //internetlaw .pf.comlsubscriberslhtml/newallprimarysource documents. asp
What can government do? To stimulate e-commerce and e-business: Encourage trust by good legislation and reinforcement of the legislation Provide consumer protection Live by example Provide regulatory framework - E-commerce law; contracts and signatures - Online Dispute Regulation
What can government do? To stimulate e-commerce and e-business: Active (international) trade facilitation that incorporates e-commerce and e-business practices Active (international) trade promotion that incorporates e-commerce and e-business practices 0
Invest in ICT in all sectors and all levels
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
What can government do ? Dissemination of information should be - On Time - Accurately - Complete - Relevant - Up to Date - Easy to digest - Easy to find - Variety of media
0
Follow up should be - On time - Transparent - Easy to trace - Fair - Procedure as simple and straight forward as possible
Average Annual Percentage of GDP Devoted to ICT Spending (1993-2001) l Country New Zealand Sweden
l Singapore I United Kingdom I United States l Canada
Country Colombia France
I 1 1
Country 7.0
Chile
6.9
7%
I Country
1
%
5.5
1 Slovenia
1
3.7
Slovakia
5.5
Czech Republic
Brazil
5.4
Israel
Portugal
I Mexico 1 Turkey
Belgium
1
6.5
Viet Nam
Finland
1
6.4
Italy
6.2
Taiwan Province of Chin;
Russian Federation
6.2
Greece
India
Germany Hungary
Netherlands
Norway
Denmark
Ireland
Hone. Kone., China
Republic of Korea
South Africa
Austria
Malaysia
1 1
1 1 1 1 1
6.1 5.8 5.8 5.8 5.6
Spain
1 Venezuela 1 Argentina 1 China
1 1
3.5 3.3
Thailand
4.2
3.9
Egypt
1 Indonesia
1
2.1
l Poland
Source: UNCTAD, 2003.
UNCITRAL Underlying Principles: Equivalence. Paper documents and their electronic counterparts have the same legal value Autonomy of contracts. Whether in paper form or in electronic form, the substantive content of the contract remains the same Voluntary use of electronic communication The requirements for a contract to be valid and enforceable remain the same Application to form rather than substance. In other words, the law regulates the contractual framework, form but not the content of the contract Consumer protection laws should take precedence over the provisions of the UNCITRAL Model Law
Part Three: ICT Policy Training Module
E-ASEAN Reference Framework for E-Commerce Legal Infrastructure a
Notes principles such a s transparency, predictability, neutrality and non-discrimination
a
Narrow scope on the transactional aspects of e-commerce
a
Provides guidelines for member states but is not as complete as UNCITRAL
Part 11: ICT incubators
Start up company characteristics Limited capacity to pay rents Limited willingness to enter long-term leases Need for flexibility to accommodate growth Often sponsored by venture capital or multinationals (spin-offs) Usually in the ICT or other hi-tech sector Not for profit versus for profit incubators: - Not for profit often sponsored by government, universities or research centres - For profit incubators often sponsored by real-estate agents, multinationals or venture capitalists Lack of ready capital Lack of market channels Techno-entrepreneurs often lack business skills
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
What is an incubator? "A business incubator is an economic development tool (usually a centre) designed to speed up the growth and success of start up Companies through an array of business support resources and services. A business incubator's main goal is to produce successful firms that will leave the programme financially viable and freestanding" . The Incubator self should be run as a business. Derived from The Allen Consulting Group, Australia, 2003.
Part Three: ICT Policy Training Module
Incubation services Flexible low cost office space Flexible lease arrangements Business and management services 0
Financial assistance and capital-raising Advice on government policies and assistance Assistance in market access Training and coaching
Incubator critical success factors NATIONAL AND INTERNATIONAL ENVIRONMENT
Technical Infrastructure
Government
v ENTERPRISE
v
v
-
ENTREPRENEUR INCUBATOR A A
1
/ 1
T H A
Manager Training
Consultants
Rigorous Business Strategy Development
International Business Linkages
Internet Technical
Community Linkage
National
P
Source: Lalkaka. R. (1996).
1 1
Entrepreneurial selection Graduation
INCUBATOR ENVIRONMENT
I 1
Professional
zdvi;
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Why incubators? Assistance overcomes obstacles in: High capital requirement Research input Techno-entrepreneurs with lack of business skills Access to fast moving markets Social and environmental consequences Acquisition of Good market intelligence Set 'Graduation' date Incubation stimulates SME growth and innovation
The Finnish Innovation System An innovation system refers to the operation and interaction of universities, research institutions, other public sector organizations, and private businesses, which together influence the creation, diffusion and utilization of novel know-how.
Part Three: ICT Policy Training Module
Part 111: ICT as a sector
Prerequisites for ICT Industry development (1) A stable political environment Transparent and fair governance A safe environment An enabling policy and strong trade facilitation Ability to understand and apply international bus iness practices Mature, secure and efficient banking sector
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Prerequisites for ICT Industry development(2) An infrastructure with ample bandwidth, speed and affordability
Comparative and competitive advantages that will make clients choose this country over another Skilled human resources and low labour costs Language skills Physical contacts abroad (many companies in IT export have local offices in the countries where their customers are based) Strong innovation/R&D capacity
Hierarchy of service Figure 1: BP0 Hierarchy of services, E-Commerce and Development Report 2003 Other four skill levels plus industry Services
Higher Value Higher Risk
Client Interface: language and culture processes Specific rule-based processes Simple
l National
Data entry, transfer and conversion tasks
Learn trick of the trade, build
l
I
confidence, stimulate I professionalism, prepare for international orientation
l
Foreign
I
Accidental, learn to integrate cultural management into business practice, strengthen trade facilitation, create jumping board, gain size and momentum, build partnerships for the future On purpose, learn to assess new markets, learn to take calculated risk, build strategic partnerships, reach maturity
Higher Risk
lI-Iigher Margins l
Part Three: ICT Policy Training Module
What can government do? Mindset - Of the government itself - Of service organizations
- Of the public at large Trade Facilitation Creating an attractive environment Country Promotion
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
What can government do? To facilitate ICT export: Make use of available international networks Encourage learning of international business practices and skills Stimulate learning key foreign languages Implement a strong coherent trade promotion strategy
Part Three: ICT Policy Training Module
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Trade Promotion Trade promotion refers to programmes and activities to promote and develop trade with other countries. Trade promotion is the market strategy of a country.
What can government do? To facilitate ICT export: Facilitating, clear and consistent trade facilitation policy Respect international agreements such as TRIPS Regulate excess and abuse Strengthen local infrastructure; create ICT hubs Encourage international players to settle in country
Part Three: ICT Policy Training Module
Trade Facilitation Focus on the efficient implementation of trade rules and regulations. Trade facilitation needs to be a coherent set of measures that facilitate smooth business transactions.
Trade Facilitation Key components: Trade and Customs Legislation and Regulations Trade Documentation and Procedures Customs Clearance Procedures Trade and Customs Enforcement Practices The efficient and effective use of ICT Trade Finance Infrastructure Development
Legislation: considerations Internet is borderless
-
which jurisdiction applies?
Validity of contracts
-
electronic signatures?
Who owns knowledge? Should all knowledge be protected? What to do with illegal or unwanted use of the Internet or other networks? The sky is the limit - spectrum licensing
Good Practices in Information and Communication Technolom Policies in Asia and the Pacific
WIPO - IPRs "Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce. Intellectual property is divided into two categories: Zndustrialproperty, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source; and Copyright, which includes literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and those of broadcasters in their radio and television programmes".
WTO - TRIPS Agreement on Trade Related Aspects of Intellectual Property Rights: Emphasizes the ownership of intellectual property Regulates globally copyrights, trademarks, industrial design, patents
ICANN-DNS DNS
=
Domain Name System (dot. ...)
ICANN = The Internet Corporation for Assigned Names and Numbers - Allocates domain names - TLDs = Top Level Domains Generic: .corn, .org, .net Country code: .vn, .th, .nl Uses "Registrars" - local ISPs - Pay to ICANN for services
Part Three: ICT Policy Training Module
ICANN - Trademark conflict Domain names can conflict with trademarks: - What to do with someone registering: www .cocacola.com? ICANNs response: - Minimum quality requirements for registration - Respect of IPRs - Uniform Domain Name Dispute Resolution Policy (UDNDRP)
Part IV: Public Private Partnerships
Public Private Partnership Definition:
A cooperative venture between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks and rewards. (The Canadian Council for Public-Private Partnerships)
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Public Private Partnership Privatization
Public administration
Types of PPP Design-Build (DB) = The private sector designs and builds infrastructure to meet public sector performance specifications, often for a fixed price, so the risk of cost overruns is transferred to the private sector. Operation & Maintenance Contract (O&M): A private operator, under contract, operates a publicly owned asset for a specified term. Ownership of the asset remains with the public entity. Design-Build-Finance-Operate (DBFO): The private sector designs, finances and constructs a new facility under a long-term lease, and operates the facility during the term of the lease. The private partner transfers the new facility to the public sector at the end of the lease term. Build-Own-Operate: The private sector finances, builds, owns and operates a facility or service in perpetuity. The public constraints are stated in the original agreement through on-going regulatory authority. Build Own Operate Transfer (BOOT): A private entity receives a franchise to finance, design, build and operate a facility (and to charge user fees) for a specified period, after which ownership is transferred back to the public sector. Build-Buy Operate (BBO): Transfer of a public asset to a private or quasi-public entity usually under contract that the assets are to be upgraded and operated for a specified period of time. Public control is exercised through the contract at the time of transfer. Operation Licence (OL): A private operator receives a license or rights to operate a public service, usually for a specified term. Finance Only (FO): A private entity, usually a financial services company, funds a project directly or uses various mechanisms such as a long-term leas or bond issue.
Part Three: ICT Policy Training Module
Establishing partnerships A real need Under standing Mutual trust Visible benefits Clear incentives
Ownership
Public Private Partnerships Know and understand your partner - Recognize the strengths and the weaknesses of the partnership Build synergies and trust Maintain open communication - Give complete and timely communication - Seek to solve problems together Emphasize and strengthen the partnership through formal written agreements Honour these agreements Share risks and rewards
Risk assessment A good risk assessment saves resources Include ratings from global companies such as S&P Risk assessment and management during the Feasibility and Analysis phase of project development Example methods - Simple Factor Rating - Design-Reality Gap Assessment Techniques
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Part V: Online financial services
Online financial services Definition Supporting existing banking mechanisms Facilitation of customer services delivery - Automated payments systems - Electronic Fund Transfer (ATM) - Prepaid cards - Telebanking - Internet banking - Home banking - E-cash - Credit cards, Debit cards, Smart cards - E-trading - Consumer Reward Systems
Part Three: ICT Policy Training Module
Key elements of E-finance 0
Order
0
Contract
0
Transaction - Of money - Of service - Of physical goods
0
Delivery
0
Dispute
Key elements of E-finance Solvency, reliability and reputation of national banking institutions Interoperability with international banking systems User trust - Predictability - Reliability - Technical Competence - Fiduciary Responsibility Instil trust - Data and transaction security - User privacy - Online Dispute Resolution (UNCTAD 2003) - Consumer protection
Data Security and Encryption Data security - the mechanisms that control access to and use of databases Encryption - as set of secret codes which defends sensitive information that crosses over public channels SPAM - Unsolicited "junk" e-mail sent to large numbers of people to promote products or services Spy-ware - A general term for a program that surreptitiously monitors your actions Bot - Derived from the word "robot", a bot is a software programme that performs repetitive functions, such as indexing information on the Internet
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Solutions Data security - the mechanisms that control access to and use of databases Encryption - as set of secret codes which defends sensitive information that crosses over public channels Firewall - software, located at a network gateway server, that protects the resources of a private network from users from other networks Anti virus program - A software programme that detects and removes viruses
Public Key Infrastructure (PKI) The architecture, organization, techniques, practices and procedures that collectively support the implementation and operation of a certificate-based public key cryptographic system. The PKI consists of systems which collaborate to provide and implement the Public Certification Services.
Part Three: ICT Policy Training Module
Concluding remarks ICT as a sector or business tool is complex Therefore use as much as possible existing structures and networks Work closely together with the ministry of Trade and Industry and Piggyback as much as possible on existing initiatives
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
MODULE 11: PRIORITY PROGRAMMES At the early part of the workshop, the participants were told that they needed to come up with their own action plan at the end of the workshop. These action plans would be based on all the learnings they have gathered throughout the week-long training. It is the hope of the organizers that these action plans would make this workshop very fruitful for the participants by providing them an opportunity to immediately apply what they have learned in this workshop, to learn what their counterparts are doing in their countries, to determine commonalities and differences in approaches, to learn from and network with their colleagues, and to solicit comments from the ESCAP and ITU resource persons. Through this exercise, ESCAP and ITU, most especially their regional advisers, would determine which country would need assistance and determine what areas are of concern to the countries in the Asia-Pacific region. Each individual participant presented their action plan and its components: Brief description of project Linkage to National ICT Plan Objectives, Anticipated Outcome, Benefits Human and Organizational Impact Financial Considerations Challenges Foreseen in Implementing your Action Plan Schedule and Next Steps Various priority programmes presented included policies and initiatives related to: National ICT plan E-government plan E-business E-learning Local Content Generation Protection of Cultural and Linguistic Diversity Digital Library Knowledge Management E-health Community Information and Communication Centres, Multipurpose Community Telecentres
Part Three: ICT Policy Training Module
MODULE 12:
ICT TRENDS The workshop did not have sufficient time to have a separate session to discuss ICT trends. However, during the presentations, group discussions, breakout sessions, case studies and question and answer portions, the workshop was able to cover and note the importance of the current ICT trends such as the benefits of using open standards, free and open source software, web services especially for e-government, mobile access technologies, and the possible application of e-tourism. References such as UNCTAD's E-Commerce Development Reports for 2001, 2002 and 2003 (which covers all of the above stated ICT trends), plus various other publications and research materials were provided to the workshop participants.
Good Practices in Information and Communication Technologv Policies in Asia and the Pacific
REFERENCE Sabido IX, D.J., 2003. "Enabling Policies and Regulatory Frameworks for Information and Communication Technology (ICT) Development in the Asia-Pacific region" paper presented at the Regional Seminar, Bangkok, 1-3 December 2003.
, 2004. "Enabling Policies and Regulatory Frameworks for Information and Communication Technology (ICT) Development in the Asia-Pacific Region", paper presented at the Regional Training Workshop, Bangkok, 3-7 May 2004.
PART FOUR REGIONAL SEMINAR AND ESCAPIITU REGIONAL TRAINING WORKSHOP
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Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
I. REPORT OF THE REGIONAL SEMINAR ON ENABLING POLICIES AND REGULATORY FRAMEWORKS FOR INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT IN THE ASIA-PACIFIC REGION, BANGKOK, 1-3 DECEMBER 2003 ORGANIZATION OF THE SEMINAR The Regional Seminar on Enabling Policies and Regulatory Frameworks for Information and Communication Technology (ICT) Development in the Asia-Pacific region was held at Bangkok from 1 to 3 December 2003.
Attendance The meeting was attended by the representatives of the following countries: China, India, Kazakhstan, Nepal, the Philippines, Republic of Korea, Sri Lanka, Thailand and Viet Nam. Representatives of ITU, APT and UNIDO also participated in the seminar. The list of participants is given in annex A.
Agenda item 1 - Opening of the Seminar The meeting was called to order by MS Keiko Okaido, Deputy Executive Secretary, ESCAP. She extended a warm welcome to the representatives of the nine participating countries of the Asia-Pacific region as well as those of ITU, APT and UNIDO. Information and Communication Technology ( K T ) was one of the driving forces of globalization and, if used appropriately, provided developing countries with huge opportunities for socio-economic development. ICT had the potential to improve the livelihoods of the poor by improving the delivery of services, to provide income earnings opportunities and empower people through participation in decisionmaking. However, access to ICT and their benefits was not equally distributed between communities and among all countries in the region, which gave rise to a growing digital divide. In that regard, it had been determined that the major impediments to participation by the majority of people in developing member countries, especially the least developed countries, in the use of ICT were poor connectivity, inadequate infrastructure, low levels of education, paucity of trained manpower and insufficient investment. Unless there was equitable access to K T , knowledge sharing would continue to be constrained by the digital divide, further marginalizing such countries in the development process. To bridge the chasm, appropriate policy and regulatory framework development, capacitybuilding and related issues needed to be addressed in a holistic manner. ESCAP had, therefore, taken the initiative in the preparation of a regional road map towards the information society in Asia and the Pacific, which, as part of the global WSIS process, took into account multi-stakeholder partnerships and innovative regional cooperative programmes. It was pointed out that the primary aim of the project, which had been generously funded by the Government of the Republic of Korea, was to assist government policy makers in acquiring the necessary knowledge to develop systematic, comprehensive and articulated ICT policy and regulatory frameworks through training and information-sharing activities to enable broad-based ICT development
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
security; and the Asia-Pacific regional conference on e-commerce etc. The seminar was apprised of the panel discussions to be held as part of the parallel events during the World Summit in Geneva, where the five regional commissions of the United Nations including ESCAP, UNDP, the World Bank and the United Nations ICT Taskforce would participate. Information was also given that ESCAP, in cooperation with the regional office of ITU, as well as APT, had organized an expert group meeting on a regional road map towards an information society in Asia and the Pacific. That meeting had taken stock of the regional initiatives in ICT and translated them into a regional road map towards an information society in Asia and the Pacific and adopted specific recommendations for action at the national and regional levels aimed at creating an information society and meeting the objective of mainstreaming ICT to achieve the Millennium Development Goals (MDGs). The participants were urged to consider implementation of the recommendations contained in the regional road map and outcome of the first phase of the WSIS, which were important in narrowing the digital divide within and among the countries of the region and in the formation of an information society. The seminar took note of the policy recommendations contained in the Tokyo Declaration of the Asia-Pacific regional conference, the regional road map towards an information society in Asia and the Pacific document, and those emanating from the first session of the Committee on Managing Globalization of ESCAP. Against the backdrop of those events, it was stated that the overall objective of the current meeting was to provide a greater understanding of policies, strategies and regulatory frameworks that explicitly promoted ICT access, development and diffusion in the participating countries and other countries of the region. Ultimately, it was hoped that the outcome would encourage the participating countries to improve the enabling environment and institutional mechanisms for enactment of the ICT policy and regulatory frameworks required to bridge the existing digital divide.
Agenda item 5 - Overview of critical aspects of ICT policy and regulatory framework design As a guideline for the participating countries to focus their country presentations, an overview of the critical aspects of ICT policy and regulatory framework design was presented. Those important aspects covered national ICT policies, ICT infrastructure, universal access, human resources development, and the actual ICT policy environment related to e-commerce, enhancing the ICT industry, ICT innovation and e-government. Suggested priority programmes on e-government, e-learning, e-health, local content generation and community centres or kiosks were discussed. Certain technology trends such as mobile Internet, VoIP and open source software were also suggested for consideration in the ICT policy formulation process.
Agenda item 6 - Presentation of country papers on ICT policy development and regulatory framework design China China's ICT policy efforts were concentrated on the following aspects:
Strengthening the construction of the information infrastructure At the current stage, the Government of China was urgently addressing the need to invest in telecommunications infrastructure in the middle and western part of China. Telephone installation fees and calling charges were being further reduced to improve the adoption of telephone services in
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
undeveloped areas and regions. Efforts were also under way to ensure that local public institutions such as government organizations, agricultural science and technology promotion stations, savings banks and financial institutions, and post offices had access to the Internet. That was so that rural communities could profit from the Internet revolution. Popularization of education
Teaching ICT at the primary and secondary schools would allow new generations to learn the requisite ICT skills needed for the information society. Exploration of information resources and realization of information sharing
To develop information resources and realize information sharing, the first step was to promote e-government. At present, there was a need to integrate the requirements of economic development with social demands to identify priorities and key tasks of information resources development and establish market mechanisms for the promotion information resources exploration and providing information services to the public. Strengthening R&D on ICTs
The key to bridging the digital divide was to strengthen R&D on ICTs, in particular, their core technologies, since those were also necessary from the perspective of national information security. China needed to develop rapidly its national information industries and possess its own core technologies in order to bridge the digital divide. In that connection, China would facilitate its R&D on integrated circuits and operational systems with their own IPRs, and the further development of Linux. As far as some leading technologies developed by China were concerned, such as the third-generation mobile communications standards and the second-generation Internet, China would beef up its efforts for the further promotion and application of ICT and for enhancing the comprehensive market competitiveness of its ICT industries. India
It was appreciated that during recent years, India's excellence in the ICT sector was being increasingly recognized by other countries. It was happening because of the tremendous improvement in its regulatory environment. The policy framework governing the ICT sector was largely responsible for the growth of the ICT industry in general and for export prospects in particular. Initiatives taken for policy liberalization in key areas were: Human resources development (HRD) Connectivity Infrastructure Taxation IT Act 2000 Those key areas had a direct impact on the IT software and services industry. The policies not only helped the ICT industry in India to globalize but also served to position India as a key destination for investment, especially in such segments as IT services, IT enabled services, B P 0 and R&D.
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
To encourage industry in the ICT sector, the Government of India had announced the following schemes for individuals (Indian citizens) and companies: Domestic tariff area Special economic zones Export processing zones 100 per cent EOU STP Likewise, an overseas companylindividual may set up operations in India as follows: As a foreign company through a liaison officeJrepresentative office, project office or a branch office As an Indian company through a joint venture or a wholly owned subsidiary A foreign company as one that has been incorporated outside India and was conducting business in India Major laws such as IPR law, tariffs and taxes, Indian copyright Act, Cyberlaws and the Communications Convention Bill 2000 were either established or were in the process of enactment. Kazakhstan The general regulations of Kazakhstan provided some opportunities for the use of new information technologies and the Internet for the comprehensive development of the State, democratization of society, and meeting the information needs of the population. The Constitution of the Republic of Kazakhstan, and its laws, included the following principles regulating legal relationships in the field of ICT: Right to free retrieval and dissemination of information, freedom of speech, freedom of expressing personal views and beliefs, in printed and other forms Developing governmental and non-governmental information resources, raising the awareness of the population, meeting information needs of non-governmental organizations, and adoption of ICT in government institutions Priority development of the national information infrastructure, development of ICT, improvement of ICT systems, networks and data transmission facilities Use of ICT in governance, development of e-commerce, e-education, social environment and communication culture To computerize the society and develop information technologies, the Government of Kazakhstan was taking the necessary steps to adopt ICT. That would result in the adoption of ICT at the national level, create conditions for the wide-scale adoption of ICT in the economy and in the life of each member of society, and better competitiveness of the national economy in. the world market. Nepal
It was mentioned that Nepal's journey into the world of ICT had begun three decades go earlier with IBM 1410 for the population census of 1971. In the late 1980s, Nepal had adopted the privatization and globalization policies and revised its telecom Act and Regulation in stride with the challenges posed by globalization and to create an environment for private sector participation. 321
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
It was highlighted that Nepal IT Policy 2000 was a landmark step for ICT development. To place Nepal on the global IT map within the next five years, the aim of the IT policy was to make IT accessible to the general public and to increase and upgrade employment, while at the same time to build a knowledge based-society and to establish knowledge-based industries. The main strategies in fulfilling the IT policy were the role of government in promoting, facilitating, regulating and encouraging private sector participation; promotion of foreign investment in IT infrastructure development; and IT businesses. The adoption and diffusion of ICT in the country would also precipitate the development of sustainable and competitive modern information technology in the rural areas. The meeting was informed that Nepal had adopted a liberal telecom policy which had been announced in 2001. From 2004, all telecom services would be open to the private sector. The tele-density was 1.5 per cent per 100 inhabitants in 2003, whereas the number of mobile phone users was very low because of the high cost. Internet growth was a result of a significant public-private partnership and a strong base of IT software and service companies were emerging. There was a shortage of professional managers and technical experts to develop the IT industry. Most of the IT graduates were migrating to developed countries for better opportunities. Distance education was also growing: 52 colleges under four universities were offering IT-related undergraduate and graduate courses with an annual intake of about 5,000 students. Penetration of IT was growing in both government and businesses, although the private sector was in the lead in implementing ICT. The meeting was informed that institutional mechanisms were being developed and the Act rules and regulation were in the formulation stage. The establishment of an IT park, IT excellence centre and community-based tele-centre was intended to spread and enhance ICT usage in the country. The electronic transaction and digital signature Act was in the process of approval from the Cabinet. E-commerce, e-business, e-governance, e-health and e-education were also emerging and being implemented to some extent. With the overall ICT Act in the draft stage, the IT policy was being revised through the oversight of a high-level commission under the chairmanship of the Prime Minister. In conclusion, the major problems of the IT sector in Nepal appeared to be the digital gaps that existed within the country as well as those with the outside world. There was a need to bridge the gap through the development and extension of IT resources and services by mobilizing internal resources as well as by attracting foreign investment. The current lack of coordination between ministries, the gap between policy and implementation as well as the lack of a clear-cut open policy towards investors needed to be addressed and resolved. Perhaps the most crucial factors that could lead to the desired development of the IT sector were political stability, visionary leadership and an environment conducive to security. Philippines A presentation was made on the activities undertaken by the Government in partnership with the private sector and academe in advancing the ICT development agenda. The role of the Information Technology and E-Commerce Council (ITECC) which had been organized in 2000 and chaired by the President of the Philippines, the highest policy-making body focusing on ICT, was described. ITECC's current focus was on e-government, ICT, business development, infrastructure, legal and regulatory framework and human resources development. It was observed that there had been a very remarkable improvement in terms of access. With ICT policies on infrastructure in place, access to information and communication services had expanded exponentially in the last few years. Implementation of e-government projects was guided by the
Good Practices in Information and communication Technologv Policies in Asia and the Pacific
Thailand
The current status of the diffusion of the information infrastructure covering telecommunications, computing, broadcasting and Internet was outlined. The evolution of the IT policy was highlighted starting from IT 2000 to the current ICT Master Plan. The institutional framework was also discussed, particular attention given to the establishment of the Ministry of Information and Communication Technology. It was explained that the IT Policy Framework for the years 2001-2010 aimed at moving Thailand towards a knowledge-based society. The five flagships of the policy were e-industry, e-commerce, e-government, e-education and e-society. The seven strategies as outlined in the national ICT Master Plan 2002-2006 were: (1) ICT industry development, with emphasis on software industry; (2) ICT utilization to enhance the quality of Thai life and society; (3) ICT R&D reform; (4) the reinforcement of social capability for future competition; (5) entrepreneur capability development; (6) ICT utilization in SMEs; and (7) ICT utilization for public administration and services. Illustrated examples and initiatives for each area were given, and the presentation concluded by discussing the key success factors learned over the past several years on policy and its implementation.
Viet Nam Viet Nam paid considerable attention to the development of ICT in the country. The IT Master plan for the period 1995-2000 focused on: Enhancing the basic knowledge of IT among the population Promoting the application of IT, initially in the government sector (establishment of the governmental backbone to directly connect central government with provincial government and ministries) The IT Master plan for the period 2000-2010 would focus on: Accelerating the use of ICT in all areas of the eco-society, primarily through e-commerce, e-government and in education Mounting a step-by-step build-up in the national ICT industry, starting with the software industry Increasing investment in ICT infrastructure, especially for the Internet Internet and content development for rural areas (i.e., the programme on "Post-Telecom and Culture Points for Villages") Promoting HRD for ICT Priority was also given to accelerating the establishment of an e-legal environment in Viet Nam, such as through: Working Programme of the National Assembly to set up a cyberlaw, with the deadline for the final draft in 2004 and Parliamentary processing in 2005. It would concern the following issues: -
E-transaction
-
E-signature; CA
-
IPR copyright issues
-
Privacy
Cyber crimes
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
Agenda item 7 - Regional ICT policy efforts: case studies and "best practices" The experiences of Malaysia, India and the Republic of Korea were highlighted so that other Asian and Pacific countries might learn from those three countries that had had a headstart in ICT policy formulation and had made considerable efforts in ICT programme and project implementation. Malaysia
Malaysia's Multimedia Super Corridor (MSC) was the key ICT programme initiated by Prime Minister Mahathir Mohammad. The MSC sought to provide a comprehensive world-class ICT-enabled working and living environment to catalyse the development of a knowledge-based economy. As a global test-bed for innovative solutions, the enabling environment and incentives provided attempted to attract leading global webshapers to use MSC as a hub as well as help to spawn both local and foreign small and medium sized enterprises (SMEs). Flagship applications were introduced to provide business opportunities for private sector participation. Malaysia was also the first country to pass a bill on convergence. The Communications and Multimedia Act 1998, which had come into effect on 1 April 1999, provided a regulatory framework to cater for the convergence of the telecommunications, broadcasting and computing industries, with the objective of, among other things making Malaysia a major global centre and hub for communications and multimedia information and content services. India India was known worldwide for its IT human resources and software products and services. The establishment of software parks such as the world-famous Bangalore IT Park had propelled the software industry. India's Software Technology Park (STP) scheme was being replicated worldwide. Various e-government initiatives by the Indian States of Andhra Pradesh and Karnataka provided best practices for other countries. Andhra Pradesh had a project called e-Seva. An e-Seva centre was a 24 X 7, one-stop shop for several G2C and B2C services. From the payment of utility bills to the issue of birth and death certificates, permits and licenses, reservation of bus tickets and receipt of passport applications, the e-Sera centres offered a wide range of services under one roof. The Indian State of Karnataka had a project called Bhoomi. This project involved the computerization of land records carried out by the Department of Revenue in Karnataka. The record of Rights Tenancy and Crops (RTC) played a vital role in the life of Indian farmers. Republic of Korea
The Republic of Korea's measures to revise and update its regulatory framework on the telecommunications service sector, primarily through liberalization, have led to a tremendous growth in the telecommunications service sector in a much more competitive market environment and further growth is projected, making the Republic of Korea the world's leader in wireless telecommunication services as well as broadband Internet services and applications. The country's top eleven e-government initiatives were well worth noting.
Good Practices in Information and Communication Technolo~vPolicies in Asia and the Pacific
Agenda item 8 - Presentation and discussion on draft ICT policy training module Through the study visits, country presentations and discussions, a draft framework on an ICT policy training module for policy makers was presented. The training module proposed would consist of modules covering ICT overview national ICT policies, ICT infrastructure, universal access, human resources development, and the actual ICT policy environment related to e-commerce, enhancing the ICT industry, ICT innovation and e-government. Expected benefits of the training include promoting awareness where technical assistance was needed most, identifying regional best practices on ICT policy development, encouraging participating countries to improve the climate and institutional mechanism for the enactment of ICT policy and regulatory frameworks, and finally, to highlight priority areas that apply across nations. After the discussions in the seminar on the content and format of the training module, the draft presented was adopted, in principle. The meeting decided to give each participating country until the end of December 2003 to forward its comments and suggestions to ESCAP (
[email protected]). The draft framework was expected to be improved and finalized for use at the follow-up regional training workshop.
Agenda item 9 - Operationalizing ICT policies The ESCAP regional adviser for ICT policies and strategies presented key aspects regarding the implementation of ICT policies and strategies. Two key elements of those process were highlighted: the involvement of stakeholders, and the structuring of the implementation process. It was explained that the importance of the involvement of all stakeholders was crucial to successful implementation. That involvement was recommended to be advisory at the policy level and participatory at the implementation level. Furthermore, it was emphasized that successful policy implementation was dependent not only on technology per se but heavily so on the capacity and motivation of the people involved in the process. By involving all stakeholders, one created ownership of the implementation process and opened up new opportunities to find creative solutions to practical problems that might arise along the way, especially in the area of resource mobilization. Furthermore, it was highlighted that the whole implementation process needed to be highly structured, coordinated, well monitored and evaluated. A coordinating group, consisting of stakeholders from the line ministries and other parties involved, should perform that task. It was emphasized that such a group needed the trust of all involved and should be given considerable decision-making power. It was recommended that the seven drivers of ICT (institutional capacity, access, human resources, private sector development, policies and strategies, content and applications and strategic compact) be used to structure and factor in the central elements of the implementation process. That would help to ensure that all areas involved in the implementation of policies and strategies were covered. Last but not least, it was recommended that monitoring and evaluation tools, achievable milestones, what-if scenarios and exit strategies be included in every project plan.
Agenda item 10 - Discussion and recommendations From the presentations and discussions held during the Regional Seminar by delegates from the participating countries and experts from ESCAP, ITU, UNIDO and APT, the following recommendations emerged from the deliberations and were adopted by the meeting:
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
The meeting recognized the need for the creation of favourable policy and regulatory frameworks conducive to the adoption and diffusion of ICT, and for promoting awareness among government policy makers of the need for action to develop systematic, comprehensive and articulated ICT policy and regulatory frameworks. Participating countries recognized the importance of improving the climate and institutional mechanisms for the enactment of ICT policy and regulatory frameworks. The meeting noted that while there had been rapid growth of ICTs over the last several years, some developing countries of the region had not enjoyed the economic and social boost that those technologies could confer on the economy and wider society. A Government's enactment of meaningful policies, legal and regulatory frameworks, as well as supporting economic and fiscal measures, were very important facilitators for accelerating the demand for ICTs and their development and diffusion. The meeting observed that the objectives and content of ICT policies had similarities and differences in international, regional, national, local and organizational contexts. While the effectiveness of an ICT policy and regulatory framework in one country did not guarantee that the same recipe would work in another, many developing countries faced similar constraints that needed to be taken into account when such policies were formulated. The meeting encouraged the compilation, documentation, sharing and discussion of the experiences of the participating countries, and working that information widely available to the intended target groups. The meeting recognized that successful ICT policies needed to take into account all relevant aspects of ICT policy and regulatory framework design: overall national ICT policies, ICT infrastructure, universal access, human resources development, and the actual ICT policy environment related to e-commerce, enhancing the ICT industry, ICT innovation and e-government. Other suggested priority programmes on e-government, e-security, e-learning, e-health, local content generation and community centres or kiosks were discussed. Certain technology trends such as mobile Internet, Internet telephony (Voice of IP) and open source software could also be considered in ICT policy formulation. National ICT policy The meeting noted that the formulation of a national ICT policy must be driven by needs and national priorities. The national ICT policy should contribute to national development; i .e . , for the economic and social benefit of the country. Policies needed to pay attention to facilitating the use of ICT within and across sectors, organizations, and production and marketing units of varying sizes. One approach in addressing that problem was to facilitate the active participation by users of all sorts in policy dialogues, to obtain an expression of their needs and to incorporate them into national priorities, and then to undertake efforts to absorb their specific requirements and circumstances into the national ICT policy planning exercise. ICT policy formulation should include various stakeholders, including the private sector, key industrial sectors, civil society, the academe, Government, international and regional organizations, and the end users and the general public. The institutional mechanisms, including public-private partnerships, should be in place for the various functions related to a national ICT plan, to ensure proper policy formulation, resource allocation, implementation, oversight, coordination, monitoring, evaluation and regulation. The meeting discussed the importance of exploring various financing schemes both from internal and external sources for the development of the appropriate policy environment and infrastructure.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
ICT infrastructure The meeting stressed the importance of building national information infrastructure especially for rural connectivity. Policies were needed on deregulation, the establishment of a national ICT backbone, national and regional Internet exchange points, initiatives to enhance network competition, locally and from foreign suppliers and vendors, strategies to reduce the costs of connectivity to the whole population, wireless communications, spectrum licensing issues, and the management of Internet addresses and domain names.
Access for all The meeting recognized the need for universal access programmes, effective strategies to address the digital divides present in society and the public, models for sustainability and sharing of success stories in bridging the digital divide, the role of the Government and the private sector in the above initiatives, and the development of successful implementation models.
Human resources development Ample human resources on ICT were considered to be critical for success. The meeting recognized the need for training programmes conducted through the public education system, in higher education, for vocational, specialized, and non-formal education; training to government employees, for SMEs and micro-enterprises, in rural areas, and training by the private sector to their employees and clients. The meeting also emphasized the need to promote and adopt e-learning as a means to enhance and facilitate education and training.
E-legal environment The meeting emphasized the need for developing the proper legal environment for ICT. Relevant polices included e-commerce, trade and taxation, consumer protection and the public good, dispute resolution, convergence between telecommunications, ISPs, broadcasting, and media. The enabling environment for e-transactions, e-business contracts and e-signatures should be put in place. There was a need to look into adopting a public key infrastructure (PKI). The meeting also stressed the importance of intellectual property rights and copyright protection. Addressing cybercrimes was a must and there was a need for security and trust mark systems. Other relevant policies included addressing the freedom of expression, privacy and personal data protection; transparency issues, and having the proper monitoring, regulatory and enforcement climate.
The following were noted by the meeting as relevant issues for enabling e-businesses to fluorish: -
Incentives for businesses, encouraging private sector investment
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Policies specifically to help in developing ICT industries
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Promoting fair competition
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Enhancing entrepreneurship
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
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Trade policies
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Taxation
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Building trust and confidence
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E-payment schemes
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Financing schemes for rural connectivity, entrepreneurship, SMEs and micro-enterprises
Enhancing ICT innovation Policies to encourage ICT innovation to flourish included: -
Technology transfer mechanisms
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Local R&D efforts for the indigenization of technologies
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Venture capital financing and CO-financingthrough public-private sector partnerships
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Role of SMEs and the Government
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Intellectual property rights issues
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Use of open standards and open source software
The meeting recognized the importanced of Governments being the model users of ICT; thus, the need for efforts on e-government. Each participating country discussed its e-government strategy and strategic ICT planning methodology. The meeting noted the need for the following key e-government projects: a one-stop shop for government services online, a government e-procurement system and an interoperability framework for e-government and e-business information systems. Other priority programmes The meeting noted possible priority programmes as suggested by the Asia-Pacific Tokyo Declaration to the WSIS:
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Local content generation
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Protection of cultural and linguistic diversity
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Digital library
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Knowledge management
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E-health
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Community information and communication centres, multipurpose community telecentres
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
ICT trends
The meeting noted the importance of the current ICT trends: the benefits of using open standards, free and open source software, web services, especially for e-government, mobile access technologies, the possible application of e-tourism, and the transition from IPv4 to IPv6. ICT Policy-Development Training Module
The meeting encouraged ESCAP to develop an ICT policy training module to be conducted as a regional training workshop for government policy planners and ICT-related regulators, as well as selected civil society groups and private industry that can, and should, participate in, and influence the policy-making process. The meeting suggested that the training module contain the following components: -
Overview of ICT for economic and social development
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New challenges to ICT policy formulation
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Policy formulation process
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National ICT policies
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E-government
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ICT infrastructure
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Human resources development
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Overall legal environment
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E-business
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E-finance
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Enhancing ICT innovation
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Multilateral cooperation
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Priority programmes
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ICT trends
Role of ESCAP
The meeting agreed that ESCAP, together with other international and regional organizations, could play a leading role in promoting regional cooperation in ICT and in the follow-up of the outcomes of the World Summit on the Information Society from the strategic and operational standpoints, including in the measurement of the information society, including ICT adoption and use in the region.
Agenda item 11 - Adoption of the report The meeting adopted the report on 3 December 2003.
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
ANNEX A A.1. List of Participants CHINA Mr Gao Changlin, Director, Department of Foresight and Development Research, National Research Center for Science and Technology for Development, Ministry of Science and Technology, P.O. Box 38 14, Beijing 100038, E-mail: gaocl@nrcstd. org .cn
INDIA Mr Rajneesh Agrawal, Senior Scientist, Department of Information Technology, 6 CGO Complex, Lodhi Road, New Delhi 110003, E-mail : agr@mit .gov. in Mr D. P. Singh, Scientist, Department of Information Technology, 6 CGO Complex, Lodhi Road, New Delhi 110003, E-mail:
[email protected]. in
KAZAKHSTAN Mr Dudar Zhakenov, Counsellor, Ministry of Foreign Affairs of Kazakhstan, 65 Aiteke Bi Str, Almaty 48009 1, E-mail: dudar200 1@mail. ru
NEPAL Mr Purushottam Ghimire, Undersecretary and Spokesperson, Ministry of Science and Technology, Singha Durbar , Kathmandu, E-mail : pughimire@hotmail .corn Mr Ananda Ram Paudel, Section Officer, Ministry of Science and Technology, Singha Durbar, Kathmandu, E-mail : arpaudel@hotmail .com
PHILIPPINES Mr Fortunato T. de la Pefia, Undersecretary, Department of Science and Technology, Gen Santos Avenue, Bicutan, Taguig , Manila, E-mail : ftdpadost.gov. ph Mr Philip A. Varilla, Chief, Policy Planning Section, Department of Transportation and Communications, Columbia Tower, Ortigas Avenue, Mandaluyong City, Metro Manila, E-mail: philipvari @yahoo.com
REPUBLIC OF KOREA Mr Chul Jeung Hwang, Director, Information Security Planning Division, Ministry of Information and Communication (MIC), 100 Sejong-Ro, Jongro-Gu, Seoul, E-mail:
[email protected]. kr Mr Kyung Ho Chung, Director, Strategy Development Team, Korea Information Security Agency, 78, Garak-Dong , Songpa-gu, Seoul 138-803, E-mail:
[email protected]
SRI LANKA MS Aruni Goonetilleke, Programme Coordinator, ICT Agency of Sri Lanka, l6O/24, Kirimandala Mawatha, Colombo 5 , E-mail : aruni@icta. lk
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
Mr G.M. Fedorov
Chief, ICT Policy Section, Information, Communication and Space Technology Division
Mr S.R. Din
Economic Affairs Officer, ICT Policy Section Information, Communication and Space Technology Division
Mr Ram S.Tiwaree
Economic Affairs Officer, ICT Policy Section Information, Communication and Space Technology Division
MS Margreet van Doodewaard
Regional Adviser on ICT Policies and Strategies Information, Communication and Space Technology Division
Mr Delfin Sabido
Consultant, ICT Policy Section, Information, Communication and Space Technology Division
MS Keiko Okaido
Deputy Executive Secretary and Officer-in-Charge, a. i. Administrative Services Division
Mr Christian de Sutters
Chief, Conference Services Section Administrative Services Division
Mr David Lazarus
Chief United Nations Information Services
A.2. Programme Monday, 1 December 2003 0930-1000 hours
Registration of participants
1000-1010 hours
Opening statement
MS Keiko Okaido Deputy Executive Secretary and Oflcer-in- Charge, a. i. United Nations Economic and Social Commission for Asia and the Paczj-ic (ESCAP) 1010-1030 hours
Election of officers Adoption of the agenda
1030-1045 hours
Coffee break
1045-1 100 hours
Regional preparations towards World Summit on Information Society
Mr G.M. Fedorov Chief, ICT Policy Section Information, Communication and Space Technology Division, ESCAP
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
1100-1200 hours
Overview of critical aspects of ICT policy and regulatory framework design
Mr Devn Sabido Consultant, Information, Communication and Space Technology Division, ESCAP 1200-1300 hours
Lunch
1300-1330 hours
ICT policy development and regulatory frameworks in the participating countries Country paper: Bangladesh
1330-1400 hours
Country paper: China
MOO- 1430 hours
Country paper: India
1430-1445 hours
Coffee break
1445-1515 hours
Country paper: Malaysia
1515-1545 hours
Country paper: Nepal
Tuesday, 2 December 2003
0915-0945 hours
Country paper: Philippines
0945-1015 hours
Country paper: Republic of Korea
1015-1045 hours
Country paper: Sri Lanka
1045-1115 hours
Country paper: Thailand
1115-1130 hours
Coffee break
1130-1200 hours
Country paper: Viet Nam
1200-1300 hours
Lunch
1300-1400 hours
Regional ICT policy efforts: Case Studies and "Best Practices"
Mr Deljin Sabido Consultant, Information, Communication and Space Technology Division, ESCAP 1400-1500 hours
Presentation and discussion on draft ICT policy training module
Mr Deljin Sabido Consultant, Information, Communication and Space Technology Division, ESCAP 1500- 15 15 hours
Coffee break
Good Practices in Information and Communication Technolonv Policies in Asia and the Pacific
11. ESCAP/ITU REGIONAL TRAINING WORKSHOP ON ENABLING POLICIES AND REGULATORY FRAMEWORKS FOR INFORMATION AND COMMUNICATION TECHNOLOGY DEVELOPMENT IN THE ASIA-PACIFIC REGION, BANGKOK, 3-7 MAY 2004 ANNEX B B.1. List of Participants BANGLADESH Mr A. F. M. Mahabubul Ahsan, Deputy Secretary, Ministry of Post and Telecommunications, Bangladesh Secretariat, Bhaban-7, Dhaka 1000, Tel: 880-2-7l62 160; Fax: 880-2-865775
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Mr K.M. Ali Reza, Assistant Chief (ICT Desk), Ministry of Science and Information and Comrnunication Technology, Room No. 908, Building No. 06, Bangladesh Secretary, Dhaka 1000, Tel: +880-29566571; Fax: 880-2-7169606, E-mail:
[email protected]
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Mr S.M. Shakil Akhter, Senior Assistant Chief and PS to Secretary, Ministry of Science and Information and Communication Technology, Room No. 909, Building No. 06, Bangladesh Secretariat, Dhaka 1000, Tel: 880-2-7 161798; Fax: 880-2-7 169606; E-mail:
[email protected]
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BHUTAN Mr Tenzin Chhoeda, Director, Department of Information Technology, Ministry of Information and Communication, Thimpu, Tel : 975-2-322925; Fax: +97~-2-328440;E-mail: director@dit. gov .bt
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CHINA Mr Kang Jincheng, Deputy Director-General, Bureau of International Cooperation, Chinese Academy of Engineering, 3 Fuxing Road, Beijing 100038, Tel: + 86-10-68522665; Fax: + 86-10-685 19694; E-mail: kjc@cae. cn Mr Shi Yuchun, Official, Department of Policy and Regulation, Ministry of Information Industry, 13 West Chang'an Avenue, Beijing 10038, Tel: 86-10-66039274; Fax: + 86- 10-6601l 3 10; E-mail: mrsyc @mii .gov .cn
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MS Wu Chen, Assistant Researcher, National Research Center for Science and Technology for Development, Ministry of Science and Technology, Building C, No. 8 Puhuibeili, Haidian District, Beijing 100038, Tel: 86- 10-68251029; Fax: +86- 10-68257233; E-mail: wuc@ nrcstd. org .cn
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MS Xu Yanlai, Deputy Director of China Science and Technology Exchange Center of Ministry of Science and Technology 54 Sanlihelu, Beijing 100045, Tel: +86- 10-685 11823; Fax: + 86- 10-68515808; E-mail :
[email protected]
INDIA Mr Abhay Shanker Verma, Director (Value Added Services-11), Department of Telecommunications, Ministry of Communication and Information Technology, 1202, Sanchar Bhawan, 20 Ashoka Road, New Delhi 110001, Tel: +9 1- 11-23036869; Fax: 9 1- 11-237180%; E-mail:
[email protected]. in
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Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
Mr Rajneesh Agrawal, Scientist E, International Cooperation and Bilateral Trade Division, Department of Information Technology, Ministry of Communications and Information Technology, 6 CGO Complex, Electronics Niketan, New Delhi 110003, Tel: 91-1 1-24301801; Fax: 91-1 1-24364185
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Mr Sandip Chatterjee, Scientist C, International Cooperation and Bilateral Trade Division, Department of Information Technology, Ministry of Communications and Information Technology, 6 CGO Complex, Electronics Niketan, New Delhi 110003, Tel: + 91-1 1-24301801 (office), 26 l7974 1 (residence); Fax: 91- 11-24364185; E-mail:
[email protected]. in
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KAZAKHSTAN Mr Azamat Koshimbayev, Attorney, Agency of the Republic of Kazakhstan for Information and Communication, 473000 Transport Tower, Astana, Tel: 7-3 172-757756; Fax: 7-3 172-240611; E-mail:
[email protected] .kz
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Mr Dudar Zhakenov, Counsellor, Ministry of Foreign Affairs of Kazakhstan, 65, Aiteke Bi Str, Almaty 48009 1, Tel : +7-3272-720 130; Fax: 7-3272-720 103; E-mail : dudar200lamail. ru
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MALAYSIA Mr Jailani Johari, Head, State Coordination, Regulatory Department, Malaysian Communications and Multimedia Commission, Level 11, Menara Dato'Onn, Putra World Trade Centre, Jalan Tun Ismail, Kuala Lumpur 50480, Tel: 603-4O477 120; Fax: 603-26941803; E-mail:
[email protected] .my
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NEPAL Mr Mahesh Prasad Adhikari, Special Officer, Ministry of Information and Communications, Singha Durbar , Kathmandu, Tel : +977- 1-4225054; Fax: 977- 1-4221729; E-mail : mahesh-ad@ yahoo. com,
[email protected]. np
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Mr Purushottam Ghimire, Under Secretary and Spokesperson, Ministry of Science and Technology, Singha Durbar, Kathmandu, Tel: 977- 1-4225486; Fax: 977- 1-4491954; E-mail: pughimire @hotmail .corn, puru@most. gov .np
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Mr Shiva Bhakta Sharma Nyaupane, Joint Secretary, Ministry of Science and Technology, Singha Durbar, Kathmandu, Tel: 977- 1-4245571; E-mail:
[email protected] .np
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PHILIPPINES MS Aurora A. Rubio, Chief, Telecom Policy and Planning Division, Department of Transportation and Communications, the Colombia Tower, Ortigas Avenue, Mandaluyong City 1555, Tel: 632-7277 139; Fax: 632-7277984; E-mail : aarubioai-manila. corn.ph
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Mr Ferdinand Asinas, Engineer 111, National Telecommunication Commission, Regional Office No. 10, Kauswagan Cagayan de Oro City, Tel: +63-08822-726908; Fax: +63-08822-723285; E-mail:
[email protected] Mr Raymund Noel Borres, Acting Regional Director, Region 111, Telecommunications Office, Regional Office No. 3, Capital Compound, Malolos, Bulacan; Project Director (concurrent), Communication Programme Management Office, 6" Floor, Telecommunications Office, Main Building, Don Alejandro Roces Avenue, Quezon City, Tel: 632-3742626; Fax: 632-37 13256; E-mail: pdcpmo @yahoo.com
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Good Practices in Information and Communication Technology Policies in Asia and the Pacific
SRI LANKA Mr Jayantha Theobald Fernando, Legal Advisor, Information and Communication Technology Agency of Sri Lanka (ICTA), 160124 Kirimandala Mawatha, Colombo 5, Tel : 94- 112-369099 Ext. 74; Fax: 94112-369091; E-mail : jfdoasltnet .lk, j fdoaicta. lk
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THAILAND MS Achara Chomchalao, Human Resources Development Official, Post and Telegraph Department 87, Phaholyothin 8, Phayatai Road, Bangkok 10400, Tel: +66-2-27 10151-60 Ext. 5 15; Fax: 66-2-2781567; E-mail: achara-captd. go. th
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Mr Akarapon Houbcharaun, Research Assistant, National Electronic and Computer Technology Center (NECTEC), 112 Phaholyothin Road, Klong Luang , Pathumthani 12120, Tel : 66-2-6448150-9, Ext. 622; or. th Fax: 66-2-6446653; E-mail : akarapon.houbcharaun~necte~.
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Mr Phumisak Smutkupt, Project Analyst, National Electronic and Computer Technology Center (NECTEC), 7311 Rama 6 Road, Ratchathewi, Bangkok 10400, Tel: 66-2-6448150-9, Ext. 622; Fax: 66-2-6446653; E-mail: phumisak.
[email protected] .th
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VIET NAM Mr Nguyen Tat Dung, Senior Officer, Department of Telecommunications, Ministry of Posts and Telematics, 18 Nguyen Du Street, Hanoi, Tel: +84-4-8227799; Fax: +84-4-9436607; E-mail: ntdung ampt.gov .vn Mr Phung Bao Thach, Deputy General Director, the Information, Communication Technology Center, Ministry of Science and Technology of Viet Narn, 39 Tran Hung Dao Street, Hanoi, Tel: +84-4-9438059; Fax: 84-4-9436706; E-mail : thachpbamost .gov .vn
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Mr Tran Cong Yen, GIS Expert, Ministry of Science and Technology of Viet Nam, 39 Tran Hung Dao Street, Hanoi, Tel : 84-4-9438346; E-mail: yencong@yahoo. com
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RESOURCE PERSONS Mr Delfin Jay M. Sabido IX
Director Advanced Science and Technology Institute Department of Science and Technology Philippines
MS Eun-ju Kim
Senior Adviser for Asia and the Pacific ITU Regional Office for Asia and the Pacific Bangkok ITU
MS Margreet van Doodewaard
Regional Adviser on ICT Policies and Strategies Information, Communication and Space Technology Division ESCAP
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
SPECIALIZED AGENCY AND RELATED ORGANIZATION Mr Michael A. Calvano
Head ITU Regional Office for Asia and the Pacific Bangkok International Telecommunication Union
MS Eun-ju Kim
Senior Adviser for Asia and the Pacific ITU Regional Office for Asia and the Pacific Bangkok International Telecommunication Union
SECRETARIAT Mr Xuan Zengpei
Chief, Information, Communication and Space Technology Division
Mr G.M. Fedorov
Chief, ICT Policy Section, Information, Communication and Space Technology Division
Mr S.R. Din
Economic Affairs Officer, ICT Policy Section Information, Communication and Space Technology Division
Mr Ram S.Tiwaree
Economic Affairs Officer, ICT Policy Section Information, Communication and Space Technology Division
Mr Delfin Jay M. Sabido IX
ESCAP Consultant
MS Margreet van Doodewaard
Regional Adviser on ICT Policies and Strategies Information, Communication and Space Technology Division
MS Ja-Kyung Yoo
Chief ICT Applications Section Information, Communication and Space Technology Division
Mr Htin Aung
Website Officer ICT Applications Section Information, Communication and Space Technology Division
Mr Cihat Basocak
Geographic Information Systems Officer Space Technology Application Section Information, Communication and Space Technology Division
Mr Perter Van Laere
Chief Administrative Service Division
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Mr Christian de Sutters
Chief Conference Services Section Administrative Services Division
Mr David Lazarus
Chief United Nations Information Services
B.2. Programme Day 1 - Monday 0830-0900 hours Registration of Participants
0900-0915 hours 1.
Introduction Welcome and Opening Remarks ESCAP ITU Introduction of Participants
0915-0930 hours (Coffee break) 0930-1130 hours, Resource Person: Mr Jay Sabido, ICSTD Consultant 2.
Overview of ICT for Economic and Social Development ICT: An Overview Definition History E-commerce days The Dotcom Bust Why e-governance continues to be relevant Various Aspects of the Technology The hard and soft parts of ICT The Human Component Sorting through all the hype: What ICT can and cannot do? Why most large companies are leveraging on ICT (Coffee break) Implications to a Country National Development Industrialization
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
Economic Social Political Technological International relations Importance to National Development Why it's not just a fad Why you need it What needs can ICT address It's not just about technology Positive correlation between ICT adoption and country growth Increases efficiency and productivity Show data showing implications of a growing digital divide Examples from Other Asia-Pacific Countries Developing country perspectives Importance given to ICT by international developmental agencies
Method: Introductory presentations Class discussion Country presentations 1130-1230 hours, Resource Person: Mr Jay Sabido, ICSTD Consultant 3.
New Challenges International Policy Environment Globalization WTO General Agreement on Trade in Services (GATS) Agreement on Basic Telecommunications (ABT) WIPO WSIS ICANN Importance of Intellectual Property Rights Impact of Multinationals Changes on Employment Methods and Job Structure Mobile workforce Migration Outsourcing
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Importance on the competitiveness of the public sector Importance of International Cooperation Impact of Global Issues on National Policy-Making
Method: Introductory presentations Class discussion 1230-1330 hours (Lunch break) 1330-1630 hours, Resource Person: MS Margreet van Doodewaard, Regional Adviser on ICT Policies and Strategies, ICSTD, ESCAP
4.
Policy Formulation Policy Formulation Mechanisms Steps in policy formulation Assessing where you are now E-Readiness Indicators (make sure indicators not only cover infrastructure, but also usage and impact indicators) SWOT Analysis Strategic considerations Where do you want to go Different models Policy Components on how to attain your goal
Synergy between and consistency with Global, Regional and National ICT Policies (such as WSIS, APEC, DOT Force, eASEAN, United Nations Agencies and Organizations) Coordination Between Different Government Agencies Interoperability Framework (Coffee break) Who will be involved: Various stakeholders Private sector participation Various industrial sectors (agriculture, health, manufacturing, etc. ) End users, general public, country' S citizens
Method: Introductory presentations Group work
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
Day 2 - Tuesday
0830-1230 hours, Resource Person: Mr Jay Sabido, ICSTD Consultant 5.
National ICT Policies ICT for Economic and Social Development, must be needs-driven Case studies Highly developed countries Newly industrialized countries Emerging economies Low technology adoptors Economies in transition Small Pacific island countries Strategic ICT Planning Methodologies Development approach such as the Digital Opportunities Initiative (D01) Who should be involved? Private sector Civil society Key industrial sectors Government Set a National ICT Vision Vision statement Visioning exercise (Coffee break) Strategic Framework Human resources Infrastructure Industry Various industrial sectors such as agriculture, health, disaster mitigation, etc. Addressing the digital divide Interoperability Framework Convergence Issues Institutional Mechanisms Must be driven from the very top Oversight Policy Formulation Implementation
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Government ICT Body and Organizational Structure Coordination Between Different Government Agencies Government CIO's Roles and Responsibilities Role of the Private Sector Monitoring and evaluation
Method: Self-learning Continuation of the group work Presentation of each group 1230-1330 hours (Lunch break) 1330-1630 hours, Resource Person: Mr Jay Sabido, ICSTD Consultant 6.
E-government1" What is government? Why do we need governments Purpose of government Public Sector Reform Market alignment Productivity alignment Service orientation Decentralization Separation of Policy Making and Service Delivery Accountability Sustainability Strategic Framework G2C G2B G2G Domains of e-governance E-administration E-citizens E-services E-society E-government Development Models Survey the Various Staged Models
lo4 James S.L. Yong and Lim Hiap Koon, "e-government: Enabling Public Sector Reform", Chapter 1 of e-government in Asia, J. Yong, ed., Times Editions, Singapore, 2003.
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
1300-1430 hours, Regulatory Frameworks 11: Scarce Resources (e.g., Spectrum, Numbering, Right of Ways) Interconnection Universal Service and Its Funds Quality of Service Others through converged ICT (Coffee break)
1500-1630 hours, Good Practices of Countries in Asia and Pacific Region Case Studies
Method: Introductory presentations Cluss discussion Case studies Day 4 - Thursday 0830-1230 hours, Resource Person: Mr Jay Sabido, ICSTD Consultant 8.
Human Resources Development Training through the Public Education System Training in Higher Education Vocational, Specialized and non-formal sector training Training to Government Employees Training for SMEs and Micro-enterprises Training in Rural Areas Training by the Private Sector to Employees and Clients Looking at possible gender exclusion issues How to incentivize private sector to be become involved in human resources development Various schemes: Tax breaks
Low interest loans for HRD and PC or ICT related purchases Mobility of ICT workers Making it easier Attracting ICT experts to return
Method: Group work Group presentations
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
1000-1030 hours (Coffee break)* 1230-1330 hours (Lunch break) 1330-1515 hours, Resource Person: MS Margreet van Doodewaard, Regional Adviser on ICT Policies and Strategies, ICSTD, ESCAP
Incentives for Businesses, Encouraging Private Sector Investment Strengthen the local ICT Industry E-transactions, E-business contracts Promoting Fair Competition Enhancing Entrepreneurship and ICT Innovation Promoting Venture Capital Financing Trade Policies E-trading E-customs Taxation, cross border taxation issues Promoting demand for ICT goods and services Creating international business opportunities ICT use by businesses Particularly to help SMEs To encourage and support entrepreneurship
Method: Introductory presentations Guided brainstorming (Coffee break)
1530-1630 hours, Resource Person: MS Margreet van Doodewaard, Regional Adviser on ICT Policies and Strategies, ICSTD, ESCAP
Building Trust and Confidence Security, trust mark systems E-payment schemes Financing Schemes for Rural Connectivity, Entrepreneurship, SMEs and micro-enterprises Public-Private Partnership Schemes
Method: Introductory presentations Class discussion
Good Practices in Information and Communication Technology Policies in Asia and the Pacific
Day 5 - Friday 0830-1230 hours, Resource Person: Mr Jay Sabido, ICSTD Consultant 11. Priority Programmes E-business E-learning Local Content Generation Protection of Cultural and Linguistic Diversity Digital Library Knowledge Management E-health Community Information and Communication Centres, Multipurpose Community Telecentres ICT Awareness, Advocacy and Promotions Disaster mitigation For energy and the environment
Method: Country presentations Video presentations Class discussion 1230-1330 hours (Lunch break) 1330-1430 hours, Resource Person: Mr Jay Sabido, ICSTD Consultant 12. ICT Trends Overview of Open Standards Free and Open Source Software Web Services Mobile Access and M-Commerce Improving Internet Access Efficiency ICT Services E-tourism
Method: Introductory presentations Class discussion Case studies 1430-1630 hours, Resource Persons:
Mr Jay Sabido, ICSTD Consultant MS Margreet van Doodewaard, Regional Adviser on ICT Policies and Strategies, ICSTD, ESCAP MS Eun-Ju Kim, Senior Adviser for Asia and the Pacific, ITU Mr G.M. Fedorov , Chief, Information, Communication Technology Policy Section, ICSTD, ESCAP
Part Four: Regional Seminar and ESCAPIITU Regional Training Workshop
13. Conclusions Practical Implementation Aspects Need to get buy-in of key stakeholders Project management issues such as resource allocation, monitoring and evaluation
Method: Guided brainstorming (Coffee break) Summary of Discussions and Presentations Review of Policy Framework Closing remarks
Method: Class discussion (End of Workshop)
