Creating a Global Communication Infrastructure AL AKHAWAYN UNIVERSITY SCHOOL OF HUMANITIES AND SOCIAL SCIENCES COMMUNICATIONS STUDIES Creating a Global Communication Infrastructure Lecture by Dr. Mohammed Ibahrine based on

Globalization of the Telecommunications 1. Free Trade in Communication 1.1 Impact of WTO Agreements on International Communication 2. Why Services are important 3. Liberalization of the Telecom Sector 4. Privatizing space-the final frontier 4.1 Case Study: Intelsat 20/04/2019

Globalization of the Telecommunications 5. Key players in the global satellite industry 5.1 Hughes Space and Communication Company 5.2 Lockheed Martin Global Telecommunications 5.3 Loral Space and Communication 5.4 Regional satellite services 5.4.1 Case Study: Murdoch’s News Corporation – Around the World, Around the Clock 6. The world of telecommunications 7. Implications of a liberal global communication regime 7.1 Who benefited from liberalization and privatization? 20/04/2019

Globalization of the Telecommunications The globalization of telecommunications has revolutionized international communication Global trend in telecommunications Liberalization of telecommunications Privatization of telecommunications Deregulation of telecommunications 20/04/2019

Liberalization of telecommunications The state was for most of the twentieth century, the key player in providing a national infrastructure, equipment and regulation in international traffic In the 1990s, the state monopolies of Post, Telegraph and Telecommunications were forced to give ground to private telecommunications companies 20/04/2019

Liberalization of telecommunications As telecommunications traffic increased, so did the demand from transnational corporations for the reduction of tariffs, especially for international services In 1984, armed with his policy of “Open Skies”, Roland Reagan broke the public monopolies and allowed private telecommunications networks to operate in the national telecommunications arena 20/04/2019

Liberalization of telecommunications As a result, the US telecommunications sector was gradually deregulated, liberalized and privatized In 1985, England followed suit This shift has now affected telecommunications globally The major European countries proceeded much more slowly in the process 20/04/2019

Free Trade in Communication Free marketeers wanted to end state intervention in world trade and promote liberalization and privatization This position was strengthened with the move from GATT to the permanent World Trade Organization (WTO), which came into existence in 1995 The WTO was set up with a clear agenda for privatization 20/04/2019

Free Trade in Communication The WTO also argued that dismantling barriers to the free flow of information was essential for economic growth The proposed liberal global regime in telecommunications aims to create the conditions to enable transnational corporations to penetrate the “emerging markets” of Asia and Latin America 20/04/2019

Impact of WTO agreements on International Communication GATS Fourth Protocol on Basic Telecommunications Services (1998) is the most significant agreement for international communication It obliges the 69 signatories, representing more than 93 percent of world revenues in telecommunications services, to liberalize telecommunications in their respective countries 20/04/2019

Impact of WTO agreements on International Communication Within GATS, the telecommunications sector is divided into two broad categories: 1. Basic services: Voice telephone Telex telegraph facsimile 2. Value-added services: E-mail Voice mail Database retrieval 20/04/2019

Leading Exporters of IT products, 1996? 20/04/2019

Liberalization of the Telecom Sector The International Telecommunication Union (ITU) was established on the ethos of perceiving telecommunications as a public utility, with operators having an obligation to provide a universal service With a policy of cooperation, not competition, the ITU supported restrictions on ownership of and control over telecom operations, in contrast to the neo-liberal telecommunications agenda, which championed privatization and deregulation 20/04/2019

Liberalization of the Telecom Sector Under the new international communication regime, the ITU advices countries to dismantle structural regulations preventing cross-ownership among broadcasters, cable operators and telecom companies ITU was following the communication agenda set by the world’s most powerful nations and telecommunications corporations based in them 20/04/2019

Liberalization of the Telecom Sector The policy of liberalizing the global telecommunications system was greatly influenced by the 1996 Telecommunications Act, which transformed the industry within the USA, facilitating the expansion of private US telecommunications corporations to operate globally 20/04/2019

Privatizing Space During 1990s, satellites have become the “trade routes in the sky” Economic growth and technological progress have fuelled a huge rise in demand for global telecommunications services of all types, resulting in the phenomenal growth of satellite industry 20/04/2019

Regional Satellite Services The deregulation and privatization of the global telecommunications market, coupled with the perceived need for a strong communications infrastructure to open up new regions to the global economy, have resulted in fierce competition in regional satellite services In the Arab world, the regional satellite operator, the Arab Satellite Communication Organization (Arabsat), established in 1976 by member of the Arab League is following the path of privatisation 20/04/2019

Regional Satellite Services Other satellites, Arabsat A1 and 2B will further improve telecommunications services in the region Third generation Arabsat (3A) and the Arabsat BSS1 will cover the Arab world and Europe Saudi government is the largest investor and owner (37 percent) Thuraya Satellite Telecommunications Company was founded in 1997 with a capital base of $ 25 million 20/04/2019

The World of Telecommunications The expansion of global satellite networks is also having a significant impact on the international telecommunications industry These technologies will converge at a single point and profoundly change the industry and the marketplace The telecommunications and the dotcom industries are merging (examples) 20/04/2019

Implication of a Liberalized Global Communication Regime The global shift from state regulation to market-driven policies are evident everywhere The WTO claims that the expansion of capital through the transnational corporations has contributed to the transfer of skills and capital to the global South International communication is increasingly being shaped by trade and the market standards and less by political considerations 20/04/2019

Who benefits from liberalization and privatization The biggest beneficiaries of the processes of liberalization, deregulations and privatization and the resultant WTO agreements have been the TNCs/global players which dominate global trade Microsoft tops the list of the world’s biggest corporations Of the top 10 richest people in the world, Bill Gates leads the pack with a wealth of $90 billion 20/04/2019