Towards a policy framework for integrating space technology applications for sustainable development on the information superhighway

7. The convergent environment:
challenges for policy formulation

7.1 The digital divide and the convergence of technologies

Globalization efforts, particularly in the last decade, have resulted in the liberalization of economic policies, further resulting in the privatization of many state-owned entities involved in communication, broadcasting and other information technologies. The diversified nature of the countries and the inequitable distribution of technological advances in the region have accentuated, unfortunately, the digital divide between the haves and have-nots. The digital divide encompasses not only the lack of appropriate information, but also a lack of literacy, basic skills, local content and community participation, even as issues such as equitable access and equitable distribution of wealth become an important priority for the countries.

It is widely recognized that affordable access to information and communication technologies plays a key role in reducing the digital divide. However, issues such as interconnectivity and economy, bandwidth limitations, transmission protocols, interoperability and standardization need to be addressed, particularly for remote rural villages in least developed countries and the Pacific island countries. It is here that the satellite-based services score over others when rapid and easy installation is called for, bypassing network congestion and providing high-quality, large-bandwidth connectivity. The use of hybrid broadband techniques consisting of copper wire, optical fibre and satellites provides many a solution in bridging the digital divide.

The convergence of telecommunications, broadcasting and information technology on the information superhighway has blurred the distinction between previously differentiated segments and has posed, perhaps, the most important dimension and challenge to the policy makers in the region, even as they try to address the negatives of globalization and improve the quality of life for the ever-increasing population. Added to this, the ongoing globalization activities through extended trade, as espoused by the World Trade Organization (WTO), have necessitated new policy definitions across national boundaries, sometimes creating gaps and contradictions in national policies. Special challenges are posed as countries try to come to grips with the overwhelming technological changes that continue to create newer opportunities for services that were hitherto unimaginable. The challenges are magnified in the vast and diverse region of Asia and the Pacific, where the response to the convergence scenario still lacks focus. However, the region, in spite of the economic downturn in the late 1990s, has responded to this challenge well, reflecting the growing economic power of the region. In fact, it is widely recognized that this region holds vast potential for the coming years, as it contains almost 60 per cent of the global population and has enough market potential for many global players.

7.2 National aspirations

The wide diversity of the countries in the Asian and Pacific region in terms of political, economic, technical, social and cultural variables directly affect the current application of ICT technologies in their quest for improving the quality of life of the people. The focus and priority of each country in the region differ with changes in views on the requirement for communication, broadcasting and information technology. Japan; the Republic of Korea; Singapore; Hong Kong, China; and Taiwan Province of China which already have a well-developed basic communication infrastructure, have moved quickly towards developing full-scale broadband applications for the delivery of voice, data, video or data on demand. Their focus is towards harnessing the full benefits of the convergence technologies for further strategic development. On the other hand, for countries such as Indonesia, Malaysia, the Philippines and Thailand, which stumbled economically in the late 1990s, the demand for basic services is still high; accordingly, they are in the process of restructuring the industries even as they try to absorb and adopt the newer technologies and services, which are also in high demand. For China and India, the question is one of ensuring at least a minimum level of access to basic ICT services; they are in the process of formulating appropriate policies towards restructuring the state enterprises that largely own the services. Public accessibility at affordable cost is the prime requirement in these countries. For the least developed countries in the region, such as Bhutan, Cambodia, the Lao People’s Democratic Republic, Mongolia, Myanmar, Nepal and Viet Nam, the question is one of attaching adequate attention and priority to these emerging technologies, since immense problems exist because of expertise scarcity and inadequate financial resources (Hukill and others, 2000).

7.3 Challenges of convergence

There is wide recognition among the less developed countries of the region, which have priorities such as poverty alleviation and food security, that the ICT technologies provide a practical way of leapfrogging to catch up with the developed countries and thus bridging the digital divide. These countries are striving to formulate appropriate policy frameworks, in tune with the changing technologies, markets and services. However, as the countries in the region try to bypass some of the evolutionary developments in the technologies to catch up straight away with the latest convergent dynamics, the policy impact in these countries will be more profound, since they have to establish newer frameworks and guidelines for hitherto untried services evolving at times outside state control. It can be said that the policy makers in the region are generally ill-equipped to deal squarely with the convergence of technologies (Hukill and others, 2000).

From a purely technological angle, the convergence essentially means an increasing amalgamation of digital technologies with broadcast and switched telecommunication networks, the integration of services offered across multiple delivery platforms (including wireline and wireless networks), increasingly efficient and effective use of the electromagnetic spectrum, and the evolution of appropriate standards to make such systems interoperable. Available services owing to the convergence of technologies range from innovative information delivery systems to new types of interactive entertainment and education, greatly increasing people’s choices. In addition, the very same technologies have made delivery of the services possible on a global basis. It may not be out of place if one claims that the advent of the Internet and the World Wide Web foretold the rise of the globalization process. There are related issues, such as security, privacy and the protection of intellectual property, which also need to be addressed as the countries position themselves and put policies in place to meet the overall challenges, as they traverse the “convergence” path.

As everything becomes digital in terms of bits, thus making little distinction between voice, fax, streaming video and audio and other multimedia applications, services eventually become platform independent. Ultimately, the users do not really worry about the technologies that brought the services to their doorsteps, but they worry more about availability, accessibility and affordability, along with the quality of the services. In the region, it appears that convergence is occurring in three distinct, although interrelated, forms:

• Cross-sector convergence in services facilitated by increasing liberalization (e.g. telecom and broadcasting services)
• Development of broadband networks towards establishment of national information infrastructures
• Administrative convergence (such as merging various ministries and agencies pertaining to telecommunications, broadcasting and information technology)

7.4 Policy formulation in a convergent environment

Before the potential impact of the Internet and the emerging information superhighway was fully understood, the market structure was quite clear as to who was in charge of public interest objectives and who had a licence to distribute information. Information for mass distribution was considered public, and content control was the essential theme. The service itself was closely tied to the type of platform. For example, the basic voice service was carried primarily over circuit-switched networks, and terrestrial broadcasters aired the television programmes to the general public. In a way, the service and the delivering platform were definable as a pair, so that the Government had to focus only on leading or regulating the market content of the participants within the pairs. However, the scenario changed drastically once the convergence of technologies took over and the lines of demarcation between services and platforms started disappearing. It has resulted in very many interesting scenarios for the policy makers, since the current regulatory framework has been built primarily on the bundled service/market structure.

With services increasingly becoming platform independent, there is an interesting phenomenon of competition between service providers. The Internet Protocol networks, for example, would hold the potential to become an overarching platform in the convergence scenario. While the regulators strive to achieve efficient allocation of resources and public interest goals even in the convergent environment, there is a need to ensure some legal certainty. The means by which these public interest goals are promoted would also need to be examined by the countries in the region. Given the large-scale shift exemplified by the desire to build national information infrastructures with broadband connectivity, and the development of associated enabling technologies, including space technology, ultimately one should even define what constitute the basic services to be provided as public good. The obligation of the service providers as well as the platform providers in terms of public good services may have to be defined, with appropriate transparent guidelines for the providers of services and infrastructure as to the scope and the limits of their responsibilities. One of the mandatory functions of the autonomous Communication Commission of India under the proposed Communication Convergence Act in India is not only to promote but also to “enforce universal service obligations” of the service providers to make available such services at affordable costs to all areas that are not yet covered, including remote, hilly and tribal areas.

With ICT technology convergence taking place, the user needs are also becoming diversified – in a way that is unimaginable in a monopolistic environment. The Internet and the web reach individual households, which can be both content users and creators. And the manner and type of operational services expected of the service providers and the platforms have undergone vast changes from the earlier days, when these service providers and platforms primarily met the requirements of the Government. The interactive communication and broadcasting services have turned the users from passive receivers to active users of visual and multimedia materials. Ultimately, the push of systems development and the pull from user demands will be a catalyst for more robust services in most of the countries in the region. However, as pointed out elsewhere, unfortunately the development of ICT technologies and the degree to which the services are integrated by various sectors of economy are not evenly spread in the region.

The advent of ICT technology convergence has resulted in the introduction of many innovative services and increased competition among the service providers, auguring well for the consumers and also for the service providers. The renewed interest in developing national spatial data infrastructures with broadband connectivity on the information superhighway should provide improved scope for the introduction of new services in countries with scant service availability. Space technology applications, both in the information superhighway conduit and in content provision, are becoming an important segment of these newer services. The increasing scope and the renewed interest should also trigger a broader range of economic and social activities from increasingly efficient business and trade links to better educational opportunities. The policy framework should encourage private investment in essential infrastructure development for the widest possible range of applications to be run on the information superhighway, which would maximize economic value and growth. The policy framework should embrace competition as the key principle in decision-making, and the thrust should be “facilitative” rather than “regulative”. It should enable the countries to cope with increasing challenges arising out of various natural resources and environment degradation, including those resulting from natural disasters. The policy makers should provide flexible, transparent policy frameworks to help these services reach the hitherto unreachable population, whether it is for distance education, telemedicine, disaster management or other sustainable developmental activities. Some of these public good services may turn out to be non-remunerative; hence the need for the Government to devise appropriate means to ensure that service providers keep up their obligations.

While the convergence technologies provide opportunities for the developing countries to leapfrog and catch up with the developed countries, some potential pitfalls could be the inability or lack of preparedness of the policy makers and the regulators to plan for and adapt to an uncertain environment in a convergent situation, in which the countries are constantly forced to catch up with the emerging technological developments. The emerging ICT convergence has a potentially enormous impact on a wide range of political, economic, social and cultural activities. Drawing regulatory boundaries to deal with the rapid expansion of non-traditional players, who could be from any part of the world, is no mean task for most of the countries. Countries left behind with an inappropriate policy framework in this convergence race run the risk of being sidelined by the global economy. The convergent environment has also spawned new issues related to the technology life cycle, costs, standards, modularity and interconnectivity, interoperability, technology transfer and human resources development, which need appropriate attention while the policy framework is being built.

Even as the technological catch-up situation poses challenges and enormous opportunities for the developing countries to leapfrog in development, it should be recognized that technological advances or their deployment alone will not guarantee prosperity or enhanced quality of life for the countries in the region. The role of policy makers in the countries is unenviable in such a situation, as any short-sighted, ad hoc, stopgap manoeuvring exercises will only put the countries at greater risk in the evolving competitive global environment. The policy makers have to keep the policy frameworks sufficiently flexible for dealing with the unforeseen and unpredictable technological and market changes. Priorities have to be set that clearly address national goals and identify the role of convergence technologies in realizing such goals. Setting clear parameters for the development of ICT technologies and identifying appropriate infrastructure projects that can provide improved services to the community are the priorities for the policy makers in the region. Competition for the projects should be fair, and private sector participation should be encouraged through transparent and flexible regulatory mechanisms, the better to satisfy the increasing information needs of the society in the face of inevitable social and political changes from within and outside. Some countries in the region, such as India and Malaysia, have worked out comprehensive policies to meet the challenges arising out of the convergence, and many others are in the process of formulating them. As stated elsewhere, countries in the Asian and Pacific region have different focuses and priorities, and they have differing perspectives on communication, broadcasting and information technology requirements. As technologies converge, the question is not how to regulate convergence, but how regulation can adapt to convergence. Devising a flexible policy framework that is technology-neutral and able to handle emerging fast-changing scenarios is the challenge that the decision makers in the region face. While there may be models, there is no single straightforward solution. Each country has to chart its own means and these models could at least provide guidelines. The region has always been among the leaders in space technology and applications, and it is expected to be once again the region on which most of the global attention is going to be focused in the coming years, whether in communication transponders or remote sensing applications. Therefore, to facilitate the development of appropriate policy frameworks in this convergence age, ESCAP could no doubt bring together experts, both technologists and policy makers, from the region and outside, to exchange ideas and viewpoints and share their expertise.