Convergence in Information and Communication Technology: Strategic and Regulatory Considerations

by Rajendra Singh, Siddhartha Raja

Overview

Growth in the information and communication technology (ICT) sector has exploded over the past 20 years. Continuous dynamic market and technology developments in this sector have led to a phenomenon known as convergence, which is defined in this volume as the erosion of boundaries between previously separate ICT services, networks, and business practices. Some examples include cable television networks that offer phone service, Internet television, and mergers between media and telecommunications firms. The results are exciting and hold significant promise for developing countries, which can benefit from expanded access, greater competition, and increased investments. However, convergence in ICT is challenging traditional policy and regulatory frameworks. With convergence occurring in countries across the spectrum of economic development, it is critical that policy makers and regulators understand and respond in ways that maximize the benefits while mitigating the risks. This volume analyzes the strategic and regulatory dimensions of convergence. It offers policy makers and regulators examples from countries around the world as they address this phenomenon. The authors suggest that countries that enable convergence are likely to reap the greater rewards, but the precise nature of the response will vary by country. Hence, this book offers global principles that should be tailored to local circumstances as regulatory frameworks evolve to address convergence.

Product Details

ISBN-13:	9780821381694
Publisher:	World Bank Publications
Publication date:	02/23/2010
Pages:	140
Product dimensions:	5.00(w) x 7.90(h) x 0.50(d)

Table of Contents

Foreword vii

Acknowledgments ix

About the Authors xi

Abbreviations xiii

1 Introduction 1

Convergence Continues to Gain Momentum Worldwide 1

Responding to Convergence 4

Notes 7

2 Thinking Strategically about ICT Convergence 9

Understanding Convergence 9

Convergence Is Reality 10

Opportunities and Challenges of Convergence for the ICT Sector 14

Options for Policy Responses 20

Nothing Endures but Change 30

Notes 31

3 Emerging Regulatory Responses to Multiple Play 33

Supply of and Demand for Multiple-Play Services Are Growing 34

Multiple-Play Challenges in Legacy Regulatory Frameworks 36

What Role Should Regulatory Frameworks Play? 38

Implementing the Regulatory Response 39

Crucial Principles for an Enabling Regulatory Environment 41

Authorizations 49

Spectrum Management 63

Interconnection and Access 72

Universal Service 85

Regulatory Agencies 93

Conclusion 98

Notes 101

References and Other Resources 105

Index 117

Boxes

2.1 Convergence in Developing Countries: A Few Examples 12

2.2 The Impact of an Enabling Environment for Convergence: Wireline Telephony and Job Creation 26

3.1 Examples of Multiple Play in Developing Countries 35

3.2 Consultations Can Build Support for and Strengthen Regulatory Responses 40

3.3 How Competition in Telecommunications Affects Growth and Consumer Costs: Lessons from India and the United States 45

3.4 The Benefits of an Open Licensing Regime: The Case of VoIP 53

3.5 Malaysia's Simplified Licensing Framework 57

3.6 Japan's Move to an IP-Based Environment 80

3.7 The Potential Gap in Next-Generation Networks 91

Figures

3.1 Globally, Mobile Telephones Surpassed Fixed Lines in 2002 64

3.2 Many Cellular Operators Derive a Large Share of Revenues from Wireless Data Services 66

Tables

2.1 Forms of ICT Convergence 11

2.2 Government Responses to Convergence around the World 22

3.1 Some Examples of Regulatory Impediments to Multiple Play 38

3.2 Summary Results of a Survey of Six Countries 42

3.3 Evolving License Types to Authorize Service Providers' Operations 50