 | Issue: | Asia-Pacific II 2003 |
| Article no.: | 6 | |
| Topic: | Network Convergence from Bhutanese Perspective | |
| Author: | Lyonpo Leki Dorji | |
| Title: | Minister for Information & Communications | |
| Organisation: | Royal Government of Bhutan | |
| PDF size: | 220KB |
About author
Lyonpo Leki Dorji was appointed Bhutan’s Minister of Information and Communications earlier this year. During his 40 year career, he has served the Royal Government in various capacities including Deputy Minister in charge of the Ministry of Communications, as Deputy Minister of Agriculture, as the secretary of the Ministry of Agriculture and as the secretary to His Majesty’s Secretariat. Minister Lyonpo Leki Dorji earned a degree in telecommunications engineering in India and a degree in public administration from Victoria University of Wellington, New Zealand.
Article abstract
The Internet can dilute local cultures and traditions as floods of information from dominant cultures flow in from outside. From Bhutan’s point of view, there are many implications, even dangers that network convergence might bring. Bhutan regards the changes brought by network convergence to be inevitable. It is looking for help from the developed world, but believes that ‘plug and play’ solutions from abroad may not work due to the intricacies and intangible features of local cultures and traditions.
Full Article
Traditionally, companies designed and operated separate networks for data, voice and video applications. These three distinct networks were usually Local Area Networks (LANs) and Wide Area Network (WAN) for data, circuit-switched Private Automatic Branch Exchanges (PABX) for voice and video conferencing equipment over leased lines or Integrated Services Digital Network (ISDN) for video. As converged networks evolve and mature, networks capable of carrying all three – data, voice and video – have become simple, cost-effective and scalable. The public Internet, constantly growing and spreading its tentacles to all nooks and corners of the world, provides a huge converged platform for voice, data, video, entertainment and the like. Figure 1 shows how local call minutes have dramatically increased in Bhutan since the Internet started in June 1999. The Distinctive Culture of Bhutan The Himalayan Kingdom of Bhutan is the last bastion of the Mahayana Buddhism and is sometimes dubbed the last Shangri-La on earth. More than 72 per cent of the kingdom’s landmass is still covered by forests. Landlocked and nestled between the two most-populated countries in the world – China and India, it launched its first planned development in 1961. Although its difficult terrain poses daunting challenges for development, Bhutan has made unprecedented progress in four decades of planned development. Bhutan pursues a distinctive development model called Gross National Happiness (GNH). Articulated by His Majesty the King Jigme SingyeWangchuck the central theme of GNH is that development should be understood as a process that seeks to maximise happiness rather than the economic growth. GNH [1] places the individual at the centre of all development efforts and recognises that the individual has material, spiritual and emotional needs. GNH asserts that spiritual development cannot and should not be defined exclusively in material terms such as the increased consumption of goods and services. Providing communications for its rural population is a great challenge for Bhutan since its small population is scattered across a geographic region with difficult terrain. Bhutan has enjoyed political stability for years and provides incentives for new industries. To ensure its continuity as a paradise with a clean and pristine environment and also to lessen dependence on imported labour, Bhutan prefers ‘high value, low volume’ industries to heavy and labour-intensive ones. English is the language used for instruction in all schools, so all educated Bhutanese are conversant in English, a plus point for inclusion in the information society. Bhutan has zero customs duties on computers and network equipment. This, together with political stability, could make Bhutan a safe haven for the secure data servers of countries and companies that require a degree of backup security for critical data not available elsewhere. Companies can also outsource parts of their operations to Bhutan to obtain a competitive edge. The late eighties and early nineties saw the advent of digital communications, which today interconnect all twenty district headquarters and most urban areas of the country. Formally launched in June 1999, the Internet catapulted the nation into the era of information and communications. National TV broadcasting and the commercial cable TV also began at the same time. With the restructuring of government ministries in 2003, a new Ministry of Information and Communications was created. The Ministry is near to finalising its draft of an Information, Media and Communications Act for submission to the National Assembly, the Kingdom’s highest legislative body. The Ministry has also established committees to come up with strategic actions plans centreed on five key elements of ICT development such as infrastructure, human capacity, policy, enterprise and content and applications. Recognising that ICT will have an immense impact on virtually all aspects of our lives, the government has declared a strong commitment to National ICT Strategy and Action Plans. Implications on Governance, Business and Economy Hydro-electric energy is Bhutan’s biggest revenue earner and the Ministry has initiated discussions for closer cooperation with the power sector. Bhutan Telecom and Bhutan Power Corporation have agreed to incorporate fibre-optics in their power transmission towers and lines in their future expansions and network rollout. In the first phase, Thimphu-Phuentsholing power transmission ground wires will be replaced with fibre optic cables. TV, Internet and print media providers will be able to cost-effectively share the fibre to provide their services to towns other than Thimphu. The Ministry is pushing for e-governance for faster and transparent delivery of public services to its citizens. With e-government services, the public need not travel to government offices to fill out forms, file their taxes, or simply collect information as these can be done on the Internet by anyone, at any time and from anywhere with Internet connection. This would bring government services and support nearer to the people. His Majesty has delegated all of the government’s executive powers to elected cabinet ministers and has democratised the system through decentralisation of powers to districts and blocks. In this context, the Internet has a vital role disseminating information to the people at the grassroots. His Majesty, the King, is pushing for a written constitution currently in draft and its critical features – democratic institutions, legal frameworks, peoples’ rights, responsibilities, etc. can be effectively disseminated through new channels. Farmers will have improved access to non-formal education through cost-effective e-learning made possible by the new channels of convergence. They will also have easier access to marketing and pricing information for their farm products at auction yards across the country. The Bhutan Post and Bhutan Telecom E-post project, being developed with assistance from the Universal Postal Union and International Telecommunications Union, will connect remote villages to the Internet and provide email addresses to farmers giving them access to communications and information previously unheard of in Bhutan. Bhutan is facing rural-urban migration problems because of the disparities in infrastructure facilities and opportunities between rural and urban centres. The government, working on closing the gap through balanced regional development, is counting on convergent technologies to provide services to rural areas. WiFi and Wi-Max are supposedly cheaper technologies for rural deployment and we hope they provide the required solutions. Today’s individual requires ubiquitous communications services for flexibility. Established work cultures will change, since network-connected office workers can work from anywhere. Bhutan has no economies of scale, private sector involvement is minimal and we are forced to manage competition. Bhutan would like to join World Trade Organisation (WTO), so we are trying to develop legal frameworks that satisfy WTO requirements. While core networks may be left to bigger players in the industry, we will allow small and innovative firms to create value chains riding on bigger players’ networks. We believe that issuing licences for last mile networks and solutions to several small firms in various cities and localities can cut costs and stimulate competition and professionalism in the sector. Small entrepreneurs can provide ‘one-stop shop’ adding to the value chain to provide services for various agencies using the converged network. Convergence opens up opportunities for businesses and end users alike. Businesses can cost-effectively extend their market base beyond political borders using the Internet to reach end-users directly. Buyers will find the technology, which provides easier access to product and supplier information, shifts bargaining power to them. Since there is no need to establish a sales force or access to existing channels, entry barriers [2] are reduced and the possible players and employment opportunities increased. The Internet, with appropriate banking and transport infrastructure, can enable Bhutan to buy goods and services directly from website vendors and eliminate wholesalers, dealers, agents and retailers. Thanks to the Internet, increasing numbers of Bhutan’s handicrafts and artifacts are finding their way into the international market. One of the greatest economic and business implications of network convergence may be that telecom companies will have to transform themselves and how they do business. They cannot simply count on their earlier cash cow. The Internet has already taken billions in revenues from them. Figure 2 illustrates Bhutan Telecom’s revenue from various segments. Note that the lion’s share of the revenue comes from domestic and international long distance. With long distance revenue gone, Telco’s could be in trouble. Implications for Industry Regulation The existing regulations for specific services become irrelevant once different services are carried on the same network. This has forced many countries to review their policies and regulations with regard to converged services and networks. Convergence seems inevitable and Bhutan is cautiously drawing up policies and legal frameworks to facilitate closer development of traditional and new media. The technological and market developments may be further along in developed countries, but developing countries can bypass older technologies. The developed world can help the developing world in this transformation by facilitating financial aid, transfer of technologies and sharing proven models and best industry practices. The task of framing convergent regulation is admittedly difficult and poses many challenges such as lack of suitable models, obvious difficulties in content regulation and the inherent difficulties associated with trying to regulate as one various services each with its own unique parameters. We intend to setup convergent and technology-neutral regulatory frameworks to optimize the use of limited resources. Implications for Local Culture and Traditions With applications such as e-governance, e-commerce, e-learning, e-health, e-banking, e-post, etc., the Internet has become the lifeblood for development in the new millennium. There are also negative aspects to the Internet such as the uncontrollable flow of undesirable information – pornography, racist, cult and terrorist propaganda, violence, etc. – even to minors. Since content regulation is next to impossible, preservation of native traditions and cultures are at the mercy of floods of information from dominant cultures. One solution is to educate the general public and make them aware of the potential benefits and positive aspects of ICT. Computerisation of schools, establishments of multipurpose community tele-centres, proliferation of cyber-cafes, development of increased local content on the Internet, combating low computer literacy, networking through e-posts and the prioritisation of informed public accesses are some of the measures being taken or planned for mass public education and awareness campaigns. When people are exposed to foreign cultures their appreciation of local cultures and traditions can be deepened. We believe that these exposures will not easily erosion Bhutanese culture. Unicode for Dzongkha, Bhutan’s national language is being developed together with Microsoft. This should open the Internet and its vast resources, to Dzongkha-literate populations throughout Bhutan. Conclusion Convergence is for real and we know that Bhutan cannot remain an island. It was earlier thought that convergence was only for advanced countries and had no impact on developing countries, but cost-effective IP-based networks have made convergence a reality even for the poorest countries of the world. Without the burden of expensive legacy networks, these countries are in a position to leapfrog both technologies and regulatory frameworks. Lessons learnt by the developed world can be effectively put to use by the developing world. Bhutan will learn from the experiences of other countries, but will not jump on the bandwagon blindfolded. We will develop and formulate legislation and regulatory instruments for converged communications best suited to our unique cultural and traditional heritage.
