
|
|
||||||||||||||||||||
These are opportune times for Pacific island States. Technical, public service, and partnership precedents have been set in a wide range of activities related to improving telecommunications infrastructure, and benefits therefrom. A selection of such precedents is summarized below.
Most people think of the Internet as a medium of entertainment, information, governance, and business. Users pursue news (beyond what the local media might provide), entertainment, recreation, hobbies/avocations, education, other information, communication (including email, chat, blogging, Myspace, voice over IP telephony, videoconferencing for work or non-work purposes). Businesses serve information, e-commerce, pre- and after-sales service, and even product updates (e.g. bug fixes and enhancements to software, data files such as new airline schedules or virus detection rules). Educational institutions pursue distance learning. Medical institutions pursue tele-medicine and public health awareness. Governments attempt to reduce one’s need to visit the office for information or a form (by providing these on their Websites), or provide complete passport application procedures on the Web, for example.
On the other side are organizations providing infrastructural services, installing and managing undersea telecommunications cables and satellite communications networks, Internet service providers, domain name registration licensing (and resellers of domain name licensing). While few of these services have financially benefited developing countries, the situation could change. For example, several countries with popular top-level domain names (like Tuvalu’s .tv, Niue’s .nu, and Tonga’s .to) outsourced the licensing of their domain names – often with little accountability, transparency, governance, or revenue to the State guaranteed by such outsourcing. Niue (see below) is one such country, which has benefited by having its domain name licensor underwrite gratis non-commercial WiFi Internet for all residents and visitors to Niue – but apparently gets no detailed accounting of revenues or expenses in managing the service, nor of the types of uses of Website owners using their national domain name. Tuvalu reportedly has management representation on its domain name licensor, and receives several million dollars annually in royalties. How should such serviced be run, consistent with 21st century concepts of governance? Can the status quo be changed to such a 21st century service model, if the two are not in harmony? Look at the case history of the Eastern Caribbean Telecommunications Authority, and the references cited in that case history, for some ideas.
Most countries have organizations which register Internet domains as a licensing service to facilitate (and in some manners regulate) the development of Websites. In most countries, such registration is for individuals, organizations, or corporations acting within their territories. Exceptions are the domain names of .com, .org, .net and the like – which were originally thought of as USA - implicit domain names parsed for commercial, organizational, network and other uses but which are also commonly considered as “global” as opposed to “national” domains. Another set of exceptions is a small number of States for which domain names are commercially licensed, often by outsourced commercial licensing authorities.
In the Pacific, such States include the Federated States of Micronesia (.fm) Niue (.nu), Samoa (.ws), Tokelau (.tk), Tonga (.to), and Tuvalu (.tv), which have domain names of interest to some peoples, in some languages. Table B-1 lists registration fees and general rules for Pacific island States. Table B-1 lists the numbers of active Websites associated with domain names of Pacific island States, and also notes how popular a domain is.
Table B-1. Domain Licensing Fees and General Rules, Pacific Island States11
|
Country |
Domain |
Domain Registration Fees (US$) / 2years |
Local Presence Required? |
Other Requirements |
|
American Samoa |
.as |
$250 |
no |
none |
|
Cook Islands |
.ck |
$300 |
no |
none |
|
Fiji |
.fj |
$300 |
no |
none |
|
French Polynesia |
.fp |
n/a |
n/a |
n/a |
|
Guam |
.gu |
$200 |
yes |
Must have Admin-C in Guam. Must provide trademark if relevant to proposed domain name. |
|
Hong Kong, China |
.hk |
$400 |
no |
For .hk a company registration is needed (any country). For .com.hk a HK company registration or trademark must be provided. |
|
Indonesia |
.id |
$350 |
yes |
Must have company registration, and/or trademark, from Indonesia. |
|
Japan |
.jp |
$340 |
yes |
For .jp a local presence is required. For .co.jp a Japanese company registration is required. |
|
Kiribati |
.ki |
$300 |
no |
none |
|
Marshall Islands |
.mh |
n/a |
n/a |
n/a |
|
Micronesia |
.fm |
$350 |
no |
Costs vary by domain name, costs set by the registry. |
|
Northern Mariana Islands |
.mp |
$350 |
yes |
Must have DNS carried by Marianas registry. |
|
Nauru |
.nr |
$200 |
no |
none |
|
New Caledonia |
.nc |
$325 |
yes |
Must have company registered in New Caledonia. |
|
New Zealand |
.nz |
$200 |
no |
none |
|
Palau |
.pw |
n/a |
n/a |
n/a |
|
Papua New Guinea |
.pg |
n/a |
n/a |
n/a |
|
Philippines |
.ph |
$200 |
no |
none |
|
Samoa |
.ws |
$100 |
no |
none |
|
Solomon Islands |
.sb |
$420 |
no |
none |
|
Timor Leste |
.tl |
$250 |
no |
none |
|
Tonga |
.to |
$220 |
no |
none |
|
Tuvalu |
.tv |
$100 |
no |
none |
|
Vanuatu |
.vu |
$240 |
no |
none |
Note the implication, in comparison with registration charges for .com, .org, .net and some other domains, that registering with Pacific island State domains is not cost-competitive. Considering the diversity of sites offering .com, .org and others, it is unlikely that Pacific island State domains are also not service-competitive – at least offering additional services for the higher license charges imposed. Thus, anyone registering through these domains may do so for the name alone, or for other intangible reasons.
Table B-2. Website Development and Popularity, Pacific Island States12
|
Economy |
Web Index |
Websites In Ranking.Com |
Web Rank |
Web Rank Index |
Links3 |
Links Index |
|
American Samoa |
39 |
73 |
664 |
62 |
139 |
17 |
|
Cook Islands |
12 |
3 |
3044 |
18 |
2 |
6 |
|
Fiji |
20 |
24 |
2182 |
30 |
15 |
10 |
|
French Polynesia |
7 |
13 |
3256 |
15 |
0 |
0 |
|
Guam |
9 |
3 |
3597 |
11 |
3 |
7 |
|
Hawaii (USA)13 |
100 |
80,924 |
0 |
100 |
159732 |
100 |
|
Kiribati |
9 |
4 |
3016 |
18 |
0 |
0 |
|
Marshall Islands |
0 |
0 |
4500 |
0 |
0 |
0 |
|
Micronesia |
58 |
265 |
94 |
86 |
1457 |
31 |
|
N. Mariana Is. |
5 |
2 |
3582 |
11 |
0 |
0 |
|
Nauru |
20 |
8 |
3004 |
18 |
403 |
22 |
|
New Caledonia |
13 |
13 |
2969 |
19 |
5 |
7 |
|
New Zealand |
64 |
3617 |
21 |
93 |
2125 |
34 |
|
Niue |
56 |
1932 |
41 |
90 |
360 |
22 |
|
Norfolk Island |
11 |
7 |
3205 |
16 |
2 |
6 |
|
Palau |
4 |
6 |
3853 |
7 |
0 |
0 |
|
Papua New Guinea |
15 |
9 |
3146 |
16 |
42 |
13 |
|
Samoa |
60 |
2080 |
21 |
93 |
734 |
26 |
|
Solomon Islands |
2 |
1 |
4101 |
5 |
0 |
0 |
|
Timor Leste |
9 |
12 |
3042 |
18 |
0 |
0 |
|
Tokelau |
56 |
3129 |
60 |
88 |
524 |
24 |
|
Tonga |
61 |
579 |
42 |
90 |
1576 |
32 |
|
Tuvalu |
56 |
2992 |
14 |
94 |
140 |
17 |
|
Vanuatu |
42 |
33 |
1100 |
51 |
1976 |
33 |
|
Wallis & Futuna |
0 |
0 |
4500 |
0 |
0 |
0 |
In general, the popularity of Pacific island States’ domains depends largely on the commercial or non-commercial nature (or impression) of those domains. Whereas some public service Websites, such as www.pdc.org (Hawaii), www.sopac.fj, www.pifsec.org are well known in the Pacific, the level of investment in international governance services is relatively low in the Pacific. Indeed, if one views the more popular Websites for a particular State, one often sees obviously highly commercial Websites associated with States with high (e.g. over 50) Web Rank Index values in Table B-2.
The Southern Cross submarine telecommunications cable reportedly passes through Tuvalu waters, but Tuvalu has no cable connectivity of its own. The country relies on a 7.5 metre dish installed in 1990 for the main island of Funafuti connected to the Intelsat satellite at 174 degrees east longitude, and 4.6 metre dishes for each of eight outer islands – installed in 1994 and connected to the Intelsat satellite orbiting at 177 west longitude. With a small population and area, and a vulnerable environment, population and an economy dependent on overseas assistance, the government was on a constant search for developing its own revenue streams.
In order to make money, Tuvalu had permitted its telephone system and its 688 national phone code for “900” pay phone sex companies, a policy that was highly troubling to many of its people14. However, with the rise in popularity of the Internet, and the coincidence that Tuvalu’s .tv domain name could be popular, the government began exploring how to raise revenues through domain name licensing.
In 1998, the Government of Tuvalu conducted an auction to award the outsourcing of domain name licensing for the .tv domain. A Canadian entrepreneur, with backing from the California venture capital firm Idealab, placed the winning bid. As a result of this arrangement, the California company dotTV was formed, with Tuvalu having a 20% share and a seat on the board of the company. dotTV began licensing domain names15. India’s satellite broadcaster, ZeeTV, and TVB in Hong Kong registered .tv domain names. China.tv and free.tv were auctioned off for $100,000 to a Chinese company15. A 1999 Website16 lists the charges of dotTV as being an initial application fee of $1000, and an annual renewal of $500.
Payments to the Government of Tuvalu were made at $1 quarterly, to be capped at $50 million over a ten year period17. The first five such payments were made, plus a one-off lump sum payment of $12.5 million. Such revenues reportedly enabled the government to invest in physical infrastructure such as a school, roads and telecommunications, to pay United Nations membership fees, and to discontinue the troubling use of its phone code for phone sex services14. Tuvalu negotiated to forego its $1 million royalty payments in 2000-2001, instead receiving $3 million in shares in dotTV. However, dotTV could not eventually make the contracted-for payments to the Government of Tuvalu, perhaps partly out of unforeseen drops in revenues of some parts of the Internet economy around the late 1990s and early 2000s. dotTV sold out to VeriSign, Inc.18, with Tuvalu receiving $10 million as its share of the proceeds from that sale. The new contract vith VreiSign provides Tuvalu with $2.2/annum plus 5% of all revenue exceeding $20 million in sales per year. The arrangement is for 15 years19. The current site (www.tv), has premium names available for up to $1,000,000 (on 17 October 2006).
Thus domain name licensing has become a major factor in the income and developmental budget of Tuvalu.
Indeed, if it so prioritized, Tuvalu might be able to connect itself to the Southern Cross cable – through a splice where the cable passes nearby (if technically feasible), or through a loop cable to Fiji, approximately 1000 km away. Re-deploying first-generation cable such as is being done with PacRimWest to Papua New Guinea, might be worth queuing onto a list of projects possibly using domain name licensing funds for the .tv name – and/or as part of a possible group effort of neighbouring countries, also redeploying such cable.
Forecasting demand for bandwidth has always been an inexact process. However, it has generally been shown that, with supportive policy frameworks and normal circumstances, usage grows remarkably quickly. In 1994, Teleglobe inaugurated a cable between Canada and Europe with 5 Gigabit/second capacity, which doubled trans-Atlantic capacity. At the time, approximately 3% of the cable’s use was allocated for digital transmission, and Teleglobe’s managers estimated that it would take 17 years to fill the cable. However, the Internet tsunami surprised everyone, and the cable was full (with digital data) in less than 3 years20.
Once initial reluctance is overcome, success often breeds more success. For example, companies continue adding cable between North America and Europe, continuing the pattern reported by Teleglobe in the preceeding paragraph. Likewise, cables are set to Hawaii and Guam on their way between the Asian and North American mainland, despite the current high capacities for serving the peoples of those States – while overlooking other States that could have considerable growth if they merely had spurs from trans-pacific cables serving them.
People often bemoaned the situation for African countries, which were often considered to have unfavourable levels of Human Development Index, and also be off the beaten track for fibre optic undersea cabling. However, the South Atlantic Telecommunications Cable #3/West African Submarine Cable/South Africa Far East cable (SAT3/WASC/SAFE21), which began service in 2003, connects countries such as the Canary Islands, Senegal, Cote d’Ivoire, Ghana, Benin, Nigeria, Cameroon, Gabon, Angola, Reunion and Mauritius, while taking the long way between Lisbon, South Africa, India and Malaysia.
The owners of the cable are a consortium of telecommunications providers in the countries served by the cable. Each is a stakeholder in the successful use of bandwidth offered by the cable – and in its unique model of providing spurs from a main cable around Africa, connecting economies as small as Benin, Mauritius and Reunion.
In Mauritius, for example, the government’s ICT Authority says about this cable, owned by the participatatory ownership by 36 nations: “This results in much of the revenue being ploughed back into the continent [Africa]. . . In Mauritius . . . ADSL was introduced in the country [providing many services] at a low flat rate tariff. Mauritius is pursuing a “Cyber Island” strategy with companies seeking to outsource certain activities such as data entry/processing, call centres, fund administration, disaster scenario data backup and recovery centres22.”
Pricing for served countries is a subject of complaints on several discussion forums. Writers note that inland countries are offered claimed unnecessarily high prices for cable access/use, making satellite connectivity economically preferable. On the other hand, a recent wave of competitive offerings of broadband Internet by mobile phone operators in South Africa is apparently applying downward pressure to prices there – and suggesting that service/price competition may be arriving to some African economies. This is not unlike other economies, where incumbents may attempt to maintain high prices even with lower costs – but that competition eventually breaks such attempts, and eventually leads to better services and prices.
The countries of Dominica, Grenada, Federation of Saint Christopher and Nevis, St. Lucia, and St. Vincent and the Grenadines, have between them less than half a million residents. They were served exclusively by Cable and Wireless for much of their history, and had somewhat similar challenges to Pacific island States23.
“By the middle of the 1990s, it had been agreed by all creditable and reputable international institutions – such as the World Bank, the World Trade Organization, the International Telecommunication Union (ITU) – that monopolistic provision of services was inimical to economic progress, and that countries should liberalize their telecommunications sectors in order to appropriately face the challenges of globalisation and trade liberalisation.24
“In this context, one wishes to note the policy position of the Government of Saint Lucia which determined that it wished to put an end to the exclusive license of the incumbent, Cable and Wireless, and thereby provide an opportunity for joint negotiations with other OECS States and help advance the process of liberalisation of the sector in the sub-region. At that time, the Governments had already determined that possible benefits form liberalisation would include:
Increased foreign investment
Increased employment opportunities
Growth in local enterprises, especially the services sector
Increased penetration of telecommunications goods and services region-wide
Creation of a strong information and communications industry
Greater business volumes in the financial services sector, especially offshore banking and overall economic, social and cultural benefits.22
“The Governments also sought to ensure that the demand for existing telecommunications services would be met to support economic growth and diversification, provide a suitable environment for tourism and other critical economic sectors, and also satisfy the educational and social needs of the community. Essentially, the Governments agreed that they would endeavour to further develop the telecommunications infrastructure and services by providing a liberalized and competitive environment with open entry to stimulate the introduction of a higher range of services using state of the art technology.22
“In pursuing this development path, the laws, licenses, and agreements in existence were deemed outdated and injurious to the economic development of the Member States. The agreements were characterised by exclusivity clauses, meaning that Cable and Wireless alone was authorized to provide all telecommunications services. There was a lack of obligation to provide universal service, the licenses were all-inclusive and in effect prevented new providers from taking advantage of advancements in technology through unforeseen at the time of signing the agreements. The agreements provided for a guaranteed rate of return of 15 per cent on all investments, yet prices of services were not cost-based. There was no regulatory mechanism. The governments needed an appropriate response that would enable them to advance along this new path of creating a liberalized sector, and therefore had to establish a suitable legislative and regulatory frame-work to give effect to the new policy decision.22 . . .
“In 1997 the Heads of Government of the Organization of Eastern Caribbean States mandated the OECS Central Secretariat to pursue the liberalisation of the telecommunications sector, having sought and obtained funding for a project25. Once funding had been received a Project Management Unit was established. The Governments then agreed that a coherent and unified policy position was required by the participating States, and that this could best be achieved through a harmonized approach, such harmonization to take place at the national and regional levels, thereby ensuring participation of all interest groups and service providers.”26
The Eastern Caribbean Telecommunications Authority (ECTEL) was formed in the year 2000 to serve several small eastern West Indies islands with market liberalization and benefits of competition. It provides policy advice and makes recommendations on a broad range of telecommunications matters, and helps to manage the telecommunications sector to provide a more universal service for its members27.
When ECTEL was founded, all Member States had agreements for Cable and Wireless to provide all telecommunications infrastructure and services but broadcasting. The bilateral agreements between each State and C&W were slated to expire as early as 2000 for St. Jucia, but as late as 2024 for St. Kitts and Nevis. Soon after the ECTEL treaty was signed, the organization entered into negotiations with Cable and Wireless. In 2001, the termination of monopoly arrangements was agreed to, with new licenses issued to the first competitors in 2002. The first mobile telecommunications competitor started operations in 200328.
The ending of certain monopolistic practices in telecommunications was accomplished in court, partly on the basis of such practices violating constitutional rights of freedom of expression29. It was determined that denying a person or company the opportunity to provide telecommunications services (e.g. media for citizens to express themselves) was unconstitutional. Under this interpretation, monopolistic concessions were declared unconstitutional, thus void30. The cited article, by Mr. Derrick Redman, General Counsel of ECTEL, is fascinating reading in the context of telecommunications service models.
ECTEL has additionally spearheaded group negotiations to significantly lower international connectivity rates; to cap other rates; and to prescribe a formula (which includes targets for improvements in performance and efficiency) for permitting increases, or adjustments, in other rates/costs. Such agreements are relatively short-term, which permits frequent adjustments based on telecommunications and marketplace developments. This has led to more competitive, economical, and advanced telecommunications in its service area.
Between 2002 and 2005, overall telecommunications revenues increased 30%, mobile telephone penetration increased from 9% to 62%, Internet penetration doubled to 6%, investment in telecommunications in 2004 was 250% of what it was in 200131. Though the single telecoms provider from 2001 trimmed staff by 15% by 2004, total employment in the sector increased slightly due to the arrival of new entrants. Call rates dropped as much as 77% within ECTEL member States, while calls to the USA dropped by roughly 50% from a fixed-line telephone and 70% from a mobile phone. The World Bank estimated net savings and surplus to consumers of about US$20 million from the new rates32.
Note that the Caribbean region is also served by the Caribbean Telecommunications Union, an intergovernmental organization dedicated to facilitating the development of the regional telecommunications sector. Its stated mission is: “To create a fully liberalised telecommunications environment, by promoting competition amongst service providers for the delivery of efficient and affordable telecommunications services to the people of ECTEL Member States, by implementing applicable laws, treaties and agreements through fair, transparent and independent processes33.” CTU originally comprised of CARICOM member States, but more recently expanded beyond CARICOM members. There is also a Commision Interamericana de Telecomunicaciones (Interamerical Telecommunications Commission – CITEL), affiliated with the Organization of American States. CITEL, which claims a legacy going back over eighty years, aims to make telecommunications a catalyst for dynamic development of the Americas. The three organizations (ECTEL, CTU and CITEL) each exist, and are supported by their somewhat overlapping memberships. However, it is the youngest of the three, ECTEL, which has acted more pro-actively and corporately – to actively work on policies, advice, and negotiations for its members.
Extracted from the report
Promoting Investment in Information and Communication
Technologies in the Caribbean by Peter A. Stern, which is
Paper Number RE3-06-001, dated May 2006, but announced in March 2007
on the Website of the Inter-American Development Bank
One alternate source for the entire report is theRegulate Online website (PDF version)
II.7.1 Establishment of the Organization
The Organisation of Eastern Caribbean States (OECS), a formal grouping of nine Eastern Caribbean States (Anguilla, Antigua and Barbuda, British Virgin Islands, Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia and St. Vincent and the Grenadines (Anguilla and British Virgin Islands are Associate Members). The OECS countries have a combined population of about 550,000 and the Organisation was created on 18 June 1981, by the signing of the Treaty of Basseterre under which these countries agreed to cooperate and promote unity and solidarity among its Members. The Treaty defines the objectives of the Organisation, which are to (i) promote co-operation among the Member States; (ii) defend their sovereignty, territorial integrity and independence; (iii) assist the Member States in the realization of their obligations and responsibilities to the international community with due regard to the role of international law as a standard of conduct in their relationships; (iv) establish and maintain wherever possible arrangements for joint overseas representation and common services; (v) promote economic integration among the Member States; and (vi) pursue the objectives through its respective institutions by discussion of questions of common concern and by agreement on common action.
In 2001 the OECS Heads of Government decided to create an economic union, which will facilitate the free movement of people, goods, services and capital within the OECS region. It is expected that the Economic Union will result in economic diversification and growth, greater export competitiveness and more employment and human resource development in the region.
The Secretariat of the OECS headquartered in St. Lucia also comprises two overseas offices, Export Development Unit located in Dominica and the Directorate of Civil Aviation located in Antigua, and two joint overseas diplomatic missions located in Ottawa and Brussels. Affiliate institutions of the OECS are the Eastern Caribbean Central Bank (ECCB), the. Eastern Caribbean Telecommunications Authority (ECTEL), and Eastern Caribbean Supreme Court. The regional institutions with which the OECS collaborates include the Caribbean Community (CARICOM) Secretariat; the CARICOM Regional Negotiating Machinery (CRNM); and the Caribbean Development Bank (CDB).
II.7.2 Macro-economic overview
In the 1980s the OECS countries experienced a period of strong economic growth due to strong banana export earnings, increases in foreign investment resulting from an expansion in the tourism sector and large flows of concessional aid financing investments in infrastructure; however, growth began to decline in the 1990s and at the beginning of this decade due to losses in preferential access arrangements to external markets34 and decreases in concessional aid. More recently, the slowdown in the global economy and the increasing competition from other Caribbean destinations dampened growth in tourism and manufactured exports. The September 11, 2001 events worsened the situation in respect of the slowdown of the Tourism sector and a major drought put further pressure on declining crop production. The rate of growth of the economies of the OECS declined from 5.5% per annum in the 1980s to 3.2% in the 1990s. In 1999-2000 growth dropped further to 2.4 % per annum. A gradual shift from agriculture to services, mainly through tourism, but also offshore financial services and, more recently, telecommunications related services has, however, continued.
II.7.3 The ICT agenda and initiatives
Three regional ICT projects which are strongly supported by the OECS Secretariat are: i) the Caribbean Knowledge and Learning Network (CKLN), a physical infrastructure and an enabling environment for tertiary institutions in the Caribbean and the distance education centers of the University of the West Indies to offer and receive distance learning courses and other online services; ii) the Caribbean Culture and Internet Project which seeks to establish an online network among cultural organizations from the Eastern Caribbean and French Overseas Departments (DOM) and iii) The Telecommunications and ICT Project for ECTEL Member States.
The first two of these three initiatives are discussed in Sections II.5.4 and II.5.5 below. The Telecommunications and ICT Development Project, to be funded by a new US$ 2.7 million loan and credit from the World Bank is intended “to improve the access, quality and use of telecommunications and ICT services to achieve socioeconomic development in the OECS35.” The project has four main components: (i) strengthen the national and regional regulatory frameworks and enhance competition including the updating of the telecommunications acts and tariff regulations of the member states, developing a regional forum for consensus building, developing a capacity for alternate dispute resolution and the development of costing methodologies; (ii) review the current universal access policy and help establish a universal access fund; (iii) improve growth and competitiveness in ICT-enabled services through the utilization of broadband infrastructure; and ensure management
and administration of the overall project. There are similarities between the activities being undertaken under this World Bank project and that which is being proposed in this report for the Caribbean as a whole. (See Chapter VI).
II.7.4 OECS Telecommunications Reform Project
The OECS Telecommunications Reform Project was initially a part of a wider Economic Diversification Project, which recognized the importance and special role of telecommunications in diversifying the region’s economies from their excessive dependence on declining agricultural production and a maturing tourism sector. A number of barriers had, however, to be overcome to facilitate this sector’s playing the essential role in delivering goods and services and in the development of information based societies in the countries of the OECS. Prime among these were: i) the very high cost of telecommunications services, ii) limited access to the telecommunications services and iii) limited trained personnel in the telecommunications sector. This had a huge impact on the ability of enterprises which are dependent on these services to compete with firms in other regions with access to more reasonably priced telecommunications.
Reform of the sector, which was characterized by monopoly provision of virtually all telecommunications services, was identified as being of paramount importance. Accordingly, in October 1998 five of these OECS members (Commonwealth of Dominica, Grenada, St. Lucia, St. Kitts and Nevis, and St. Vincent and the Grenadines) joined the OECS Telecommunications Project and agreed to the following action: (i) implement a wide ranging reform program to include regulatory policy and tariff reform; (ii) put into place of a new pro-competitive legal and regulatory framework in each of the 5 countries; (iii) harmonize laws and regulations for the sector; (iv) establish a regional telecommunications authority, which was to become the Eastern Caribbean Telecommunications Authority (ECTEL); and (v) start negotiations with Cable & Wireless to terminate the exclusive arrangements which this company enjoyed on each of these islands. A regional approach was
considered to be particularly important in the view of the common issues faced by the OECS countries.
The OECS Secretariat through the OECS Telecommunications Reform Project was given the task of coordinating regional sector reform efforts. The proposed Regional Telecommunications Authority was to be responsible, inter alia, for (i) the design of transparent, objective and investor friendly license award procedures that would be implemented at a national level; (ii) number and frequency allocations for the 5 countries and (iii) acting as a forum for coordination of OECS governments' telecommunications policies for the region.
A loan of US $ 6 million had originally been negotiated with the World Bank, complemented with a US $ 4 million counterpart funding by the participating countries.
II.7.5 Eastern Caribbean Telecommunications Authority (ECTEL)
The Eastern Caribbean Telecommunications Authority (ECTEL) was established in 2000 by treaty among five OECS states, which participated in the Telecommunications Reform Project (Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, and St. Vincent & The Grenadines) (i) to promote the liberalization of telecommunications in a fair competitive environment, (ii) to harmonize policies and regulations and generally (iii) to promote the development of telecommunications in the OECS. Its prime role is to coordinate and recommend policies (e.g. on price regulation, on standards and type approval of equipment), regulations, and procedures (e.g. for licensing including license terms, conditions and fees) to the National Telecommunications Regulatory Commissions (NTRCs) in each of the Member States. ECTEL is also responsible for developing a regional spectrum plan36. ECTEL and the NTRCs are jointly responsible for managing the radio frequency spectrum.
There are three types of authorizations which are granted by the Minister in each member state: individual licences which are for larger, network build out type undertakings; class licences, which are issued on the same terms to each applicant of a category of users for the operation of a type of telecommunications network or provision of a specified telecommunications service and frequency authorizations.
Individual licenses and frequency authorizations (including those for mobile services) are awarded on a first-come-first serve basis. Applications are first received by the NTRC in the country concerned. The NTRC then refers them to ECTEL which evaluates the application against pre-established criteria and then makes a recommendation on the award of a licence to the NTRC. The NTRCs can accept or reject ECTEL’s recommendations. Any rejection must, however, be explained to the applicant in writing.
This arrangement has come under criticism by some new entrants who argue that having both a regional and national regulators adds a layer of bureaucracy to the licencing and regulatory process and causes unnecessary delays in obtaining licenses and authorizations and in resolving disputes.
II.7.6 Status and results of sector reform
The agreement which in 2000 the five (ECTEL) Governments had negotiated with C&W foresaw a termination of its monopoly in the five states and a two phase transition to a liberalized telecommunications sector. Phase 1 was to have started on 1 April 2001 with licences to have been awarded to Internet Service Providers (ISPs) and cellular mobile telephone operators. C&W was to have been issued a new, nonexclusive operating licenses in each of the five states at the start of Phase 2 (full liberalization) in March 2003. A condition for the start of Phase 2 according to the agreement between the governments and C&W was that C&W’s tariffs would be “substantially” rebalanced.
The new telecommunications acts came into effect in 2001 in each of the five ECTEL States and later that same year, Cable & Wireless was granted non-exclusive licences in each of the countries for the services it had been providing up to that time. Full competition was allowed by the legislation passed in 2001 and the first competing licences were issued early that year for ISPs. There were delays in the process of awarding licences for mobile operators. These were not issued until later in 2002 and the new entrants were not able to offer service in St. Lucia and St. Vincent until February 2003 when they finally had interconnection agreements with the incumbent.
The following individual and class licences have been awarded to date:
In Dominica the following individual licences have been awarded: 3 fixed (C&W; SAT Telecoms37 and Marpin); 3 mobile (C&W, Digicel, AT&T Wireless, Orange Caraibe). The class licences have also been granted to 2 ISPs.
In Grenada: Individual licences have been granted as follows: 3 fixed Public Telecommunications Licences (C&W, Global Network Providers, Trans-World Telecoms Caribbean Ltd.), 5 Public Mobile Telecommunications Licences (C&W, Digicel, Global Network Providers Inc., Trans-World Telecoms Caribbean Ltd. And AT&T Wireless) and 2 Internet Networks/Services (C&W, Global Network Providers Inc). The following class licences have also been awarded: 3 ISP; 1 each for Land, Maritime, and Aeronautical Mobile services.
In St. Kitts and Nevis: 2 fixed (C&W and The Cable), 1 ISP, and 3 mobile (CariGlobe, AT&T Wireless and C&W) licences have been awarded.
In St Lucia: Individual Licences [1 fixed Public Telecommunications Licence (C&W), 3 Public Mobile Telecommunications Licences (C&W, Digicel, and AT&T Wireless) and 1 Internet Networks/Services (C&W)]; Class Licences [2 full and 1 restricted Internet Service Provider Licences, 1 Private Network/Services licence (Helen IT); and 3 International Simple Resale Licences)]. Antilles Crossing Limited has been granted an undersea cable landing license (See Section IV.2.2). An application for a cable landing licence from Island Fibre/Kelcom International is currently being evaluated. Both these companies obtained cable landing licenses in Barbados on 13 September 2004.
Also in St. Lucia C&W operates a cable TV network, which covers the entire island. There is another operator, which has a small cable TV network in the south of Castries, the capital. Neither provides high-speed Internet access.
The power company, St Lucia Electricity Services Ltd. (Lucelec) has a fiber optic cable running along its high voltage power lines in the form of two loops (one north of Castries; the other in the south) encircling the whole island38. The cable is currently being used for the company’s internal (control) communications and so far Lucelec has not exploited this facility to provide high capacity leased circuit services and access for new entrants, call centers and other businesses as an alternative to the incumbent’s domestic facilities; However, until another submarine cable is installed these users would still be dependent on the only cable system which lands on the island, namely, the C&W controlled Eastern Caribbean Fiber Optic Cable System. To access capacity of other owners of this cable (or holders of IRUs) collocation arrangements would have to be made with Cable & Wireless in its Sans Souci cable station. For the time being, the regulatory framework does not cater for this.
In St Vincent and the Grenadines: the following licences have so far been granted: Individual licences [1 fixed Public Telecommunications Licence (C&W), 3 Public Mobile Telecommunications Licences (C&W, Digicel, and AT&T Wireless) and 2 Internet Networks/Services (C&W) and Karib Cable]; Class licences [3 Value Added Service Provider Licences; 4 Internet Service Provider; 4 Private Networks/Services Licences; and 5 International Simple Resale Licences]
II.7.7 Pricing issues
Retail prices are being rebalanced. Currently, peak time international rates in St. Lucia range from US$ 0.19/min for calls to the other OECS (ECTEL) countries and US$ 0.47/min – US$ 0.49/min for calls to North America, Europe and the rest of the world. While still high by international standards these are significantly lower than those in Barbados where fixed line rates have not yet been adjusted. Line rental charges have increased from EC$ 24.25 (US$ 9.00) in 2000 to EC$ 27.25 (US$ 10.09) currently. Local call charges vary between EC$ 0.04 and 0.06/min (US$ 0.015 and 0.022 min) depending on the time of day.
In St. Lucia Internet cafes charge between US$ 0.37/min for VoIP calls to USA and Canada and US$ 0.57/min for VoIP calls to the Caribbean. Postpaid (contract) mobile calling charges lie in the range US$ 0.15-0.35/min. depending on the package, the time of day, whether the call is to a fixed or mobile subscriber and whether the latter is a subscriber of the same operator or a competing mobile operator. These prices are comparable with those in Barbados. Internet access charges remain relatively expensive. C&W’s unlimited dial-up access costs EC$ 129 (= US$ 48.50) while the cheapest ADSL access (256 Kbps down/128 Kbps up) costs EC $149 (=US$ 56). Internet cafes charge in the order of US$ 2.80 per half hour. Leased circuit prices remain very high. In the OECS where it can cost anywhere from US$ 24,000 to 32,000/ month to lease an E1 circuit to the USA (International
Private Leased Circuit or IPLC) and in the order of US$ 21,000 for an E1 with access to the Internet (IP Transit).
II.7.8 Current situation
ECTEL has identified a need for a comprehensive review of the legal framework for regulation of the telecommunications sector in the 5 member countries including a revision of the Treaty which established ECTEL and the telecommunications acts in each state. The main aspects which need to be clarified include: the relationships between ECTEL and the NTRCs; the enforcement provisions in the laws do not have appropriate penalties for the infringement of the law; proper protection against abuse of dominant position; comprehensive dispute resolution regulations; reinforcing the independence of the regulator; licensing and collocation. Other issues concern wholesale rates which are currently not subject to regulation and prone to abuse by the incumbent, the absence of penalties and fines in the current regulatory framework, and anti-competitive practices by some operators and
service providers.
In addition, ECTEL has identified the following areas for strengthening and joint action:
• dispute resolution and consensus building;
• cost studies for interconnection, Internet access and certain mobile retail tariffs;
• expansion of the integrated spectrum management and monitoring system including on going training;
• developing a universal access program and establishing a universal services fund.
These are being addressed in the new World Bank financed Telecommunications and ICT Development Project39
From this modest collection of discussion points, one may develop many more.
Providing voice connectivity within and between communities is crucial for development, and for “quality of life.” While in some islands penetration of the terrestrial (wired and/or wireless) network is reasonably high, for many it could be improved. In the current era of convergence, increased tele-density cannot be planned only on the basis of Plain Old Telephones (POTs). Connectivity should facilitate broadband connection, and should follow the leading edge of new products and services – perhaps staying a bit back from the “bleeding edge” to reduce investments in technology that does not catch on.
Providing connectivity for Internet applications is important. Though there are more end-users for voice communications, and mobile phone usage is growing faster than the number of Internet users in many developing countries, data transmission bandwidth is growing faster than voice traffic growth – demonstrating the need to support significant growth in Internet bandsidth for business development, governance, as well as “quality of life.”
For providing entertainment and information simultaneously to a large number of widely distributed localities, direct broadcast service is increasingly important. Providing Direct–to-Home/Business connectivity is vital to organizations such as WalMart (which has its own satellite network for connecting every outlet with regional and global management/support). It also can improve community spirit by bringing global events like World Cup football matches, or enrichment tools like education and small business advice/support to e-centres or Internet cafes in every corner of the Pacific. This has traditionally been one-way, but can now be two-way, enabling video conferencing as well.
Satellite radio has been operating for some time. In addition, streaming radio and television over the Internet has become a reality. Such applications of improved telecommunications can consume considerable bandwidth, are largely one-way so equally viable for cable or satellite connectivity, and considerably increase quality of life. Distance education, public health, and disaster management may also be greatly facilitated by such services.
The University of the South Pacific (USP) has a home campus on Fiji, but serves twelve countries in the Pacific Ocean: the Cook Islands, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, and Vanuatu. Over half of USP’s students live outside Fiji. Thus the early 1970s USP officials started to investigate the establishment of a satellite-based distance education called USPNet. Thanks to multi-country donor support and the assistance of private partners, USPNet was begun in 1998, and completed in March 2000.
Twelve Very Small Aperture Terminals (VSAT) receive signals from an uplink in Fiji providing voice, data, and videoconferencing. Through this system, students can remain in other countries, saving time and money. Previously, many USP students found it difficult and expensive to travel and live away from their homes, while it was similarly difficult for the university to adequately staff such a widely dispersed campus community.
In the 1970s, transmission on the USA’s ATS-1 satellite was provided by the government of the USA at no on an experimental basis. Attempts to extend the reach of the satellite network sometimes included high frequency radio, with only partial success. When the ATS-1 satellite reached the end of its life, the project was suspended. In 1995, USP obtained a limited number of leased circuits at reduced charges – but was able to connect four local education USP Centres by these means. Others continued to rely on postal services for dissemination of printed, audio and video instructional materials.
In 1997, in response to a request from USP, the government of Japan arranged for a survey to be conducted on upgrading the suspended prototypes into a viable operational system. After studies and multilateral discussions, Japan, New Zealand and Australia made commitments to jointly fund the development of a new system. The completely new system was completed in March 2000.
USPNet is now a closed satellite communication network used exclusively by USP for distance education. It uses some of the C-band global beam transponder of the Intelsat 702 satellite located at 177 degrees west longitude in a geostationary orbit. There is a hub at the main USP campus in Fiji, mini hubs at campuses in Samoa and Vanuatu, and remote terminals in nine USP Centres, one in each of the other USP member countries. The system ranges over 3500 km east to west, and 2500 km north to south. It crosses both the Equator and the international date line.
The hub in Fiji has a 7.6-metre diameter antenna with 100-watt transmitters, a 64 kbps two-way channel for voice and data transmission to each of the other 11 stations, plus three 128 kbps channels for video conferencing and video lecturing. The mini-hubs have a 50 watt transmitter and three 128 kbps channels for video communications, plus the 64 kbps channel connected to Fiji. The mini-hubs have a 6-metre (Samoa) or a 4.6-metre (Vanuatu) antenna. The remote stations have 4.6-metre antennas with 20-watt transmitter. Each has a 64 kbps channel connected to Fiji and two 128 kbps channels for video communications.
The scheduling of the video channels is managed by a Schedule Management System in Fiji. The hub and mini-hubs can uplink video, whereas the remote stations can only receive video signals. Any stations may receive the uplinked (unidirectional) video lectures, whereas bidirectional videoconferencing is between any two locations only.
USP has been faced with meeting the operational costs including space segment charges, developing effective teaching methods using the system, and developing a long-term budgetary plan for maintenance and possible upgrades to the system. Nevertheless, the system offers significant benefits, if it can be maintained. In addition, theoretically, the system could link with additional facilities with the addition of infrastructural elements. It could also co-develop content with other universities in the region, and elsewhere. For example, native French speakers in French-speaking areas, could develop and deliver content in French language and literature, should such be desirable.
Video conferencing is an unsung hero for those who have routine access to the technology. Being able to participate in an off-site meeting, without having to travel perhaps for days to reach a physical meeting site, makes participation practical. Where a government has a severe shortage of qualified staff, video conferencing is even more valuable. For postulated regional organizations like a PACTEL, video conferencing is almost essential.
Originally based on proprietary systems using telephone or Ethernet cable, teleconferencing and video conferencing systems are about 10-20 years old. However, in the past five years, gratis or low cost Voice Over IP (VOIP) and IP-based video conferencing have become more common. A recent variation involves two display screens: (1) shows the conference at another site in the video-conference network. Typically, this screen shows the lecturer/speaker at any one moment. This screen may have picture-within-picture so that another venue can be shown – or one can monitor one’s own broadcast signal in the PiP for quality control. Also (2) another screen shows “the Power Point.” Media to be presented are cross-loaded to all nodes of the video conference. These are likely to be Power Point or multimedia presentations. Software allows the speaker/presenter to control the presentations at all remote nodes. Thus, if the speaker advances two slides, or backtracks 4 slides, s/he controls such navigation through the document, which is projected live at each node (rather than transmitted at lower quality over the network). This results in a significant improvement in the video conferencing experience, and takes up essentially no bandwidth at the time of the video conference.
Such systems should be in place in all Pacific island States. Indeed, government would be saved tremendous stress by having at least one video conferencing centre in each State. In addition, commercial and educational (beyond USPNet) sites would also be beneficial. Commercial globalized videoconferencing, linked with tourism, could become a revenue earning industry in some Pacific island States.
As noted in Chapter 2, the educational level sustained in many Pacific island States provides a potentially bright future for them as knowledge societies, sharing their cultural wealth by documenting same, and also by participating in the global knowledge community. As noted in Chapter 1, the 21st century has brought us new means of global collaboration via telecommunications. Adding details to this point would be a study/report in itself, so is left to others.
Similarly, we have heard about the entrepreneurs who abandoned city living for their dream home in the mountains, rural pastureland, or “tropical island.” Brief mention was made of this phenomenon in Section I. Such global telecommuters often invest heavily in their new paradise home, but are also often highly sensitive to the environment and culture of their adoptive home. Pacific island States may be able to market themselves in this manner, if they chose to do so.
Tourism is often touted as another industry with considerable potential, beyond present-day realities. Is Tokelau unreachable by air, and only by a relatively long sea voyage? Other locals market their “remoteness” as exclusivity – such is the tourism model of Bhutan. Niue has a few flights, so could be “practically remote,” or just slightly more accessible than Tokelau. Sustainable tourism, in which residents rather than globalized package firms become the tourism entrepreneurs, with guest houses and other services aimed at a diversity of socio-economic markets, can be greatly helped by e-tourism development. This is best done by expert residents – perhaps with some form of sub-regional cooperation and e-infrastructure to help develop and present content, and handle bookings.
Efficient communication is essential for disaster management. For hundreds of islands spread out in the vast area of the ocean, providing efficient communication for risk assessment and other preparations, awareness and early warning, response during and after a disaster is best achieved by well-coordinated delivery of information and communications. This includes a reliable in-place system, plus deployable disaster response communications to supplement existing capabilities and repair any damage (which often happens to telecommunications infrastructure in a disaster). Such a deployable system may now include a deployable satellite terminal, plus equipment for rebuilding mobile telephony, and providing new networking (for phone, Internet, and videoconferencing).
10 Written by David A. Hastings
11
Data from 101domains.com
Note that other services may charge higher or lower fees. Primary
concessionaire(s) for a given domain are likely to charge less –
with 101domain.com charging for its own overhead and profit.
However, using a single, relatively competitive source, can give a
“standardized” overview of the overall costs –
including “bureaucracy” level, of dealing with a given
domain name offeror. For comparison, .com, .org and some other
domains are registered through 101domain.com for $50 for two years.
Other registration services may charge a flat setup charge plus
annual renewal fees (thus resulting in a lower or higher net cost
for a given number of years). Some services charge less than
US$10/year to license .com, .org, .net or other domains – but
are often not so economical for domains of Pacific island States.
12 The prototype Web Index, a prototype indicator of the popularity of Websites on a national domain, is the mean of the Web Rank Index and the Hits Index. The Web Rank value sums the global ranking (on Ranking.com) of the 1st, 13th, and 15th most popular Websites in a domain, with the Web Rank Index scaled to 100 for most popular and 0 for least popular in terms of Web rankings. The Links3 value is the sum of the three most linked-to Websites of that domein, whereas the Links3 Index scales this from 100 (for the most external links) to 0 (for no links). The former is an indication of popularity among individuals (e.g. site visits), whereas the latter is an indication of respect by other Website developers (by linking to the site).
13 Figures for Hawaii cannot easily be parsed from those of the USA as-a-whole. Thus, overall values for the USA are given for Hawaii.
14 BBC: Net gains for Tuvalu (12 December,2000)
15
Dots on the Map - By Suh-kyung Yoon
(original published in the Far Eastern Economic Review, 14 September 2000).
Also Wired: DotTV Wants to Be Your Domain (31 August 2000)
16 TBTF Guide to Non-US Domain Name Registries
17 ZDNet: DotTV auctions 'triple' expectations
18 GNN: Not Waving but Drowning, the Plight of Tuvalu
19 ADB: Tuvalu 2002 Economic and Public Sector Review (page 10)
20 The optical network evolution: Affected by current economic slowdown? - Yves Poppe
21
SAT-3/WASC/SAFE;
SAT3/WASC/SAFE - Public / Private Global Partnership- JP Meyer;
Financial mail: Communication needs - Africans now do it for themselves (07 June 2002)
22 ICT Authority, 2004. The ICT Sector in Mauritius: An Overview. Port Louis, Mauritius, p. 9.
23 The problems are similar, but not identical. Many Caribbean islands lie relatively near to each other. The Caribbean has a recent history of regional cooperation, from the University of the West Indies, to airlines, to the Caricom economic cooperation efforts, and now ECTEL.
24 The sections of text in quotes is taken from the “Historical overview of telecommunications liberalization in ECTEL Member States” by the Hon. Mr. Calixte George, Minister for Home Affairs and Internal Security of St. Lucia, and former Chairman of the Council of Ministers for the Eastern Caribbean Telecommunications Authority. Published in the ECTEL 5th Anniversary Magazine, 2005, pp. 23-25
25 The OECS Telecommunications Project was seeded with $10 million from the World Bank and ECTEL member governments, plus support from USAID for an independent assessment of the project. A second project, called the OECS Development Project is currently ongoing to improve certain specific aspects of ECTEL’s design and operations, plus the relationships between member governments and the ECTEL process.
26 See footnote 24 for details on authorship. Some ECTEL policy documents, and negotiated agreements are posted on the ECTEL Website, for reference and possible use by Pacific island States. Beyond that, Mr. George’s history of ECTEL, may serve as an extremely valuable motivator, and partial guide, for the Pacific.
27 ECTEL Background Information and History
28 ECTEL 5th Anniversary Magazine, 2005, p. 8.
29 It is observed that virtually all Constitutions of Pacific States enshrine freedom of speech, expression, access to information and/or the like – apparently in direct parallel to the situation in the ECTEL member States.
30 Derrick H. Redman, 2005. Marpin’s constitutional challenge. ECTEL 5th Anniversary Magazine, 2005 pp. 13-17.
31 Source figures on the ECTEL Website
32 Source: ECTEL, 2006. Socio-economic Impact of Liberalisation of Telecoms Sector in the ECTEL Member States, May 2006, pp. 9-10.
34 The WTO ruling against the preferential treatment of Caribbean bananas in June 1998 accelerated this trend. See Gillson, I., A. Hewitt and S. Page (2004), 'Forthcoming Changes in the EU Banana/Sugar Markets: A Menu of Options for an Effective EU Transitional Package', Overseas Development Institute.
35 World Bank, Project Appraisal Document for a Telecommunications and ICT Development Project, April 18, 2005
36 Treaty Establishing the Eastern Caribbean Telecommunications Authority 4 May 2000.
37 SAT Telecommunications has built a fibre optic network on the island and just set up a call centre (Call 767). The latter was scheduled to start operation in January 2006 and employ some 200 people.
38 A small portion of the southern loop needs to be joined.
39 There is a larger e-development agenda before the OECS countries as they attempt to increase competitiveness. Various grant providers are considering supporting regional collaboration in training and resource sharing, development of a regional e-strategy (i.e for the development of national ICT plans), development of call centers in Grenada stablishment of a regional Internet portal to promote ecommerce and support for the development of a hub for the Caribbean Knowledge Learning Network.