1. Building the Regulatory Foundations for Development in Network Economies Professor William H. Melody Managing Director LIRNE.NET www.lirne.netwww.lirne.net First ICT Policy and Regulatory Workshop COMESA Nairobi, Kenya, 13 –16 August 2002

2. Characteristics of 21 st Century Economies Driven by the services sectors Founded on information/communication networks – next generation Internet Dependent on effective reforms in the telecom sector – information infrastructure Strengthening links among local, national, regional, internatonal networks and markets

3. Stages of Telecom/Information Sector Reform Telecom Liberalization (Participation, Univ. Access) Expanding Network Capacity (Broadband) Preparing the Network Foundation for New Services Developing New Services - “killer applications!” Applying Services Productively in Different Societies Telecom Reform & Regulation – Key Driver for Implementing Policy Reforms

4. INFORMATION INFRASTRUCTURE Regional Development Finance/ Banking Disaster Management Travel & Tourism Manufacturing Media & Cultural Sectors Health/Medical Government Services Education/Training Applications Electronic Services (Pay TV, VAS, Internet) Multimedia, etc. (Public, User group, Private) Content Broadcast Media Film Libraries Software etc Interactivity (Instant & Delayed) Voice Data Sound Graphics Video Telecommunication Facilities Network (Information Superhighway) Computing / Information Technology Telecommunication Equipment Manufacturing

5. Equipment Supply Telecom Infrastructure Service Development Competitive Markets Monopoly/duopoly/oligopolyCompetitive Markets Internet VAS Databases Network Management Telecom Equipment Computer Hardware Software Consumer Electronics PTOs The telecom sector value chain

7. Convergence Sectors Drivers of Convergence Technology Industry-Supply Market-Demand Policies/Regulation Industry Specific Convergent Applications Finance Commerce Education Health Publishing Manufacturing etc. Content Telecom Computing The Dimensions of Convergence on the Information Infrastructure

8. Criteria for Economic Growth Technologies Policies Markets ApplicationsServices Regulations Regulation: Catalyst for, or Constraint upon Growth?

9. Progress with Telecom Reform Now more than 110 Countries with Separate Telecom Regulatory Authorities WTO Commitments to Liberalization Industry Specific Focus of Reforms Successes, Failures, Unanticipated Difficulties, Continuing Delays Regulatory Reform is Proceeding at a Slower Pace than Technology Development or Market and Service Potential

10. Progress with Telecom Reform Regulation is the limiting factor constraining growth It is not a simple matter of removing regulations or eliminating regulators Sound regulatory foundations are needed to attract investment, foster applications of new technologies and development of new services. The speed of regulatory reforms must increase and they must be directed to providing a foundation for Network Economies

11. World Dialogue on Regulation for Network Economies Mission: to facilitate an international dialogue that generates and disseminates new knowledge on frontier issues in regulation and governance to support the development of network economies

12. World Dialogue on Regulation for Network Economies Project Initiator: infoDev (World Bank) Foundation Partners: infoDev LIRNE.NET Universities (TU Delft; TU Denmark) ITU Telecommunication Development Bureau (BDT) Ford Foundation and US SSRC Others

13. World Dialogue on Regulation for Network Economies Core Tasks: Dialogue on Interactive Web Site, www.regulateonline.org www.regulateonline.org Country Case Studies & Research Reports Forum Discussions among Experts Wide Dissemination in Print & Electronic Form

14. World Dialogue on Regulation for Network Economies Dialogue Theme 2001-2002: The Next Step in Telecom Reform: ICT Convergence Regulation or Multi-sector Utility Regulation ?

15. World Dialogue Theme 2001-02 ICT Convergence digitalization of the network mobility next generation Internet e-commerce media integration restructuring of industries

16. World Dialogue Theme 2001-02 ICT Convergence Regulation access to communication channels and access to content new issues of competition and monopoly privacy, security, IPR reducing digital divides? can content regulation be avoided ? the most effective role for national telecom regulators ?

17. World Dialogue Theme 2001-02 Multi-sector Utilities mergers across utilities telecom, cable TV, electricity, gas, water, transport rights of way, duct sharing & co-location universal billing common management skills

18. World Dialogue Theme 2001-02 Multi-sector Utility Regulation to match the operators efficiency across common functions wider application of limited skills independence from dominant firms? technological convergence – power line communication other?

19. World Dialogue Theme 2001-02 The Next Step in Telecom Reform ? Defining and Implementing Regulation to Facilitate Growth in Network Economies Establishing the Options, Priorities and Boundaries of Regulation Shaping the Most Effective Role for Competition Determining a New Role for Regional Regulation

20. World Dialogue Theme 2001-02 The Next Step in Telecom Reform? The Challenge: Creating regulation that leads rather than lags technology and market developments, providing a catalyst for growth in network economies?

21. World Dialogue on Regulation for Network Economies Participate in the Dialogue; review and comment on the research, www.regulateonline.org - from 3 January 2002www.regulateonline.org For more information contact Merete Henriksen, WDR Coordinator, henriksen@lirne.net Tel. + 45 4525 5178; Fax + 45 4596 3171henriksen@lirne.net LIRNE.NET, www.lirne.net www.lirne.net A Strategic Collaboration for applied research, training, policy and regulation support, relating to information infrastructure and new network economy development Center for Tele-Information (CTI), Technical University of Denmark, www.cti.dtu.dkwww.cti.dtu.dk Economics of Infrastructures, Delft University of Technology, Netherlands, www.ei.tbm.tudelft.nl/www.ei.tbm.tudelft.nl/

22. William H. Melody BS, MS, PhD, D. Eng.(hon) Managing Director, LIRNE.NET Professor, Economics of Infrastructures, Delft University of Technology, The Netherlands Guest Professor, Center for Tele-Information (CTI), Technical University of Denmark Visiting Professor, London School of Economics, United Kingdom Visiting Professor, LINK Centre, Wits University, Johannesburg, South Africa Contact: email: melody@lirne.net