Chief, International Programme Development ITU/BDT Arab Regional Workshop Evolving Liberalization in Satellite Services Manama, Bahrain – 9 December 2003 Martin Jarrold Chief, International Programme Development Global VSAT Forum 1

Evolution of VSAT 1980 1990 2003 1st Generation: $10-20K, < 64 kbps, Data 2nd Generation: $5-10K, < 2 mbps, V+D 3rd Generation ($1-10K, up 40 mbps, Multimedia)

Why Satellite? Broad geographic coverage Ease of deployment Point-to-multipoint High bandwidth Supports hybrid and asymmetric networks

VSAT Terminal Pricing Trend* Source: COMSYS *TDMA, US$ 000

Distribution of Installed Base (%) Source: MegaTech Resources

Providing Multiple Applications... Telemedicine Distance Learning Disaster Recovery Rural Telephony PSTN Infrastructure Public Security Banking Manufacturing Mining Oil & Gas Tourism Retail

Broadband Satellite Access Market Forecasts Enterprise Demand (sites) Source: Northern Sky Research

VSAT Market Evolution First Generation: Agencies, Telcos, Big Businesses Second Generation: Small Telcos, Mid-Size Businesses Third Generation: SOHO, SME, Residential, Plus

The National Administrations Act Implementing New Policies Privatising PTTs Improving Transparency Creating Independent Regulators Streamlining Regulations Enhancing Market Access

Satellite Policy Implications Satellite Has a Strong Track Record Essential Tool for Communications Policy, Regulation Can Facilitate Its Use To Elevate Economic, Health, Education Standards

When the GVF Helps Open a Market: INDIA CASE STUDY 2A & 2D Satellite Failure CHANGE IN LICENSING POLICIES TO REVENUE SHARE % AGE Change in Satellite-Access Regulation Source: VSAI

But... Key Challenges: Facilitating Cross-Border Internet Implications Transparency Licensing Convergence

The GVF: Diversity of Expertise

The Administrations Respond: ITU Question 17/1 Conduct a study and prepare a report that “will assist regulators by identifying regulatory approaches that have been successful in facilitating a competitive environment, thereby enabling appropriate satellite-based technologies suited to all stages of development.”

The Question 17/1 Survey Sent to 189 Administrations 63 Responded Further Contributions From: ITU-R ITU Task Force on Gender Issues Regional Inter-Governmental Groups Non-Profit Industry Associations Other

Key Survey Findings Satellite Regulatory/Policy Trends e.g.: Liberalisation Light-Touch: Licensing Type Approvals Spectrum Management Harmonisation

Liberalisation: “GMPCS” Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

GMPCS MoU Implementation Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

Liberalisation: Private VSAT Network Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

Liberalisation: PSTN-Linked VSAT Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

Liberalisation: International VSAT Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

Licensing: AMSS Terminals Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

Licensing: GMPCS Terminals Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

Licensing: Receive Only Terminals Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

Licensing: 2-Way VSAT Term. Source: ITU Question 17/1 - Satellite Regulation in Developing Countries

Strategic VSAT Liberalisation Has Begun Worldwide: Uganda Botswana Zambia Malawi Mozambique Lesotho Swaziland Kenya South Africa Namibia? TRASA

Strategic VSAT Liberalisation Has Begun Worldwide, Cont’d: Uruguay Venezuela Chile Mexico Brasil Peru Costa Rica Argentina CITEL

Strategic VSAT Liberalisation Has Begun Worldwide, Cont’d: Singapore Indonesia Philippines Australia/NZ Myanmar! S. Korea Japan Taiwan Hong Kong China-WTO! APT, APEC, ASEAN

Strategic VSAT Liberalisation Has Begun Worldwide, Cont’d: Bangladesh Pakistan India Sri Lanka Bhutan Nepal SATRA

Strategic Liberalisation “Nepal’s international interconnectivity rose five-fold in a few months after the VSAT market was liberalised.” ITU Telecommunication Indicators 2000

Solution: “Market Opening Works: Try it.” ITU Telecommunication Indicators 2000