 | Issue: | Asia-Pacific I 2001 |
| Article no.: | 14 | |
| Topic: | Convergence: The Challenges for APEC | |
| Author: | Ambassador Zhang Yan | |
| Title: | Executive Director | |
| Organisation: | APEC Secretariat, Singapore | |
| PDF size: | 20KB |
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Article abstract
When APEC Ministers for Telecom-munications and the Information Industry met in Cancun, Mexico in May 2000, they chose the issue of convergence as the main theme of their discussion. This topic was seen to be particularly relevant and timely as the global economy and community rapidly moves into the digital era. In recent years the world has witnessed the convergence of telecommunications, broadcasting and information technology. The lines between what were once separate and distinct sectors have become increasingly blurred.
Full Article
Digital technology has been the key to this phenomenon. The movement of digitalised voice, audio, video and data across borders is transforming the way the economy has traditionally operated. Collectively these converged industries are profoundly changing the way we do business, and indeed, the way we live. The effects can be seen in such diverse fields as finance, commerce, science and technology, education, health and entertainment to name a few. The APEC Ministers recognised the growing impact of convergence on communities and that it would bring new challenges and opportunities for the members of APEC. The question was how would APEC as a group respond to these challenges? At the end of their discussion in Cancun, Ministers adopted the Cancun Declaration containing a Programme of Action which reflected the key theme of convergence. The Programme of Action addressed many issues brought about by convergence, including: the policy and regulatory challenge, the infrastructure issue and the digital divide, particularly the human dimension. Ministers believe that convergence will bring new challenges and opportunities for the APEC Telecommunications Working Group (TEL) to assist economies with concrete actions that will harness both domestic and regional policies, with special attention paid to the needs of APEC developing economies. Foremost on the minds of the Ministers was to ensure that APEC as a group would be in a position to respond to the challenges of the digital era. They instructed TEL to “review its functions, structure and activities in the light of a converged information communications environment.” In doing so, Ministers also reiterated their commitment to the five objectives and ten core principles of the Asia Pacific Information Infrastructure (APII)*. The goal of developing the APII remains at the core of TEL’s work. Nonetheless, there was also a perceived need for TEL to perhaps reinvent itself to help economies manage the transition to the digital era more smoothly. In response to the directive from Ministers TEL adopted a comprehensive work plan covering a broad spectrum of activities ranging from liberalisation of telecommunication markets, policy and regulatory issues, bridging the digital divide, human resources development, infrastructure development, access to services, e-commerce and International Charging Arrangement for Internet Services. The Regulatory Challenge The convergence phenomenon has given rise to a situation where existing regulatory structures are no longer adequate or appropriate. Traditionally telecommunications, broadcasting and information technology had been treated as separate sectors and were regulated by different regulators. However, the transformation of these traditional services and the development of new services and platforms call for new strategies and policies. The challenge for governments is to provide the proper regulatory structure and legal framework to facilitate the development of these services and avoid the risk of excessive, inconsistent and overlapping regulations. APEC Ministers recognised the trend towards convergence in the market place and noted the increasing need for effective competition policies to be in place. They instructed TEL to: – study the impact of regulatory, policy and technological environments on the delivery of and access to convergent services; – – encourage discussion on promoting diversity in the supply of information and access to it; – promote dialogue on possible incentives to improve business /private sector participation in the supply of communications goods and services; and – support competitive markets in the domestic and international telecom-munications and information industries. TEL will also be implementing the Regulatory Structures Project. The aims of this project are to: increase understanding throughout the commu-nications (telecommunications, broad-casting and information technology) community of the current status of regulatory structures across APEC economies to encourage investment and broad economic growth; and, assist discussion among APEC economies of regulatory options that may facilitate the convergence of their telecommunications, broadcasting and information technology industries. In Cancun, Ministers also tasked TEL to encourage greater dialogue among policy and regulatory officials, and, where appropriate, between officials and the private sector. In this regard, TEL has agreed to hold a Convergence Roundtable in March 2001. High level representatives from regulatory authorities and private sector participants in the APEC region will attend the roundtable. It is envisaged that the roundtable discussion would consist of a mix of general discussion and discussion on specific case studies such as broadcast, telecom and Internet; IP telephony; power, telecommunications and broadcast regulation; and, wireline and wireless services. The Digital Divide The convergence phenomenon serves to highlight an issue of great concern to everyone. That is, the issue of the digital divide. Within APEC there is a great disparity between developed and developing member economies. The contrasts can be quite stark when you consider that many people in APEC member economies do not have ready access to a telephone let alone a computer or the Internet. Among 21 member economies, 9 have teledensity of 40% and above and for most of those economies the figure is closer to 50%. The remaining 12 economies have teledensity below 20%, with many having less than 5 or 10%. The human capacity to operate and use new technology is also of particular concern. Therefore it is clear that there is an urgent need for APEC member economies to try to narrow the gap between the information rich and the information poor. In Cancun, Telecommunications Ministers urged TEL to “continue to place an emphasis on bridging the digital divide at the domestic, regional and international levels”. Ministers emphasized the need to engage the business/private sector through co-operation and collaboration in this effort. In particular, Ministers encouraged initiatives aimed at: – improving network access, especially in under-served urban, rural and remote areas; – assisting developing economies to reform their policy and regulatory structure to meet new environments; – reinforcing and enhancing human resource development activities through various measures such as utilising distance learning technologies; – promulgating knowledge and recog-nition of the digital divide by holding appropriate fora; – monitoring the fair and sustainable development of the Internet in the APEC region as an integral part of the Asia-Pacific Information Infrastructure (APII); and – pursuing explanatory work to define concepts, to measure the extent of domestic, regional and international digital divides, and to assess economic and cultural reasons for divides with a view to develop technology neutral, pragmatic approaches to encourage greater access.” At the recently concluded Twelfth APEC Ministerial Meeting in Brunei, APEC foreign and trade ministers “acknowledged that a digital divide could further widen social and economic disparities across the APEC region, and underlined the importance of ensuring that everyone in the APEC region has access to the opportunities presented by ICT networks.” The Ministers therefore called for improvement in access to affordable technology and called for a public-private partnership to create digital opportunities and spread the benefits of the new economy throughout all segments of society. APEC Leaders also met in Brunei a few days after the Ministers and reinforced the importance of information and communications technology to the development of APEC and the global economy. They pledged to develop and implement a policy to give everyone in the 21 APEC member economies access to the Internet by 2010. The Leaders recognised that this would require massive infrastructure develop-ment and human capacity building and committed to working in close partner-ship with the business community and those involved in education and training to achieve this goal. Leaders also endorsed a wide-ranging Action Agenda for the New Economy which directs Ministers to work out measures to move APEC forward on the New Economy including human capacity building, facilitating investment in infrastructure and development of technology, liberalisation of trade in telecom-munications and IT services, continuing work on consumer protection, customs procedures, transport services standards and conformance and business mobility, and support of small and medium enterprises. With these policy directives APEC will begin to address the issues related to the digital divide. TEL has already made a start with the development of a draft Digital Divide Action Plan in order to focus and coordinate the activities within TEL in addressing the issue of the digital divide. Other APEC fora such as the Sub-Committee on Economic and Technical Cooperation, the Committee on Trade and Investment, the Economic Committee, the Human Resources Development Working Group are also expected to contribute to the effort to bridge the digital divide. Ministers have agreed to implement a project on Transforming the Digital Divide into a Digital Opportunity which aims to address the human resources needs of member economies. Conclusion Convergence has given rise to new opportunities and challenges for APEC. On the one hand it presents many new and exciting opportunities for increasing economic growth and raising standards of living. On the other hand it presents governments with new challenges to keep up with the changing environment. In order to fulfill the potential benefits of the ICT revolution, APEC member economies will need to put into place appropriate regulatory and policy frameworks which are responsive to the needs of the industry as well as to users and consumers. At the same time it highlights the disparities between the APEC member economies and the need to bridge the digital divide. These issues will be high on the APEC agenda in the years ahead. *The five objectives (agreed during the first Ministerial meeting in Seoul 1995) are: 1) facilitating the construction and expansion of an interconnected and interoperable information infrastructure in the region; 2) encouraging technical cooperation among member economies in the development of infrastructure; 3) promoting free and efficient flow of information; 4) furthering the exchange and development of human resources; and 5) encouraging the creation of a policy and regulatory environment favourable to the development of the Asia Pacific Information Infrastructure. The ten core principles are: 1) encouraging member economies in the construction of domestic telecommunications and information infrastructure based on their own reality; 2) promoting a competition driven environment; 3) encouraging business/private sector investment and participation; 4) creating a flexible policy and regulatory framework; 5) intensifying cooperation among member economies; 6) narrowing the infrastructure gap between the advanced and developing economies; 7) ensuring open and non-discriminatory access to public telecommunications networks for all information providers and users in accordance with domestic laws and regulations; 8) ensuring universal provision of and access to public telecommunications services; 9) promoting diversity of content, including cultural and linguistic diversity; and 10) ensuring the protection of intellectual property rights, privacy and data security.
