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Governance, Regulation and Network Development. Strategic Planning Workshop LIRNE asia Colombo, Sri Lanka, 17-19 September 2004. Characteristics of 21st Century Network Economies & Information Societies. Driven by the services sectors
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Governance, Regulation and Network Development Strategic Planning Workshop LIRNEasia Colombo, Sri Lanka, 17-19 September 2004
Characteristics of 21st Century Network Economies & Information Societies • Driven by the services sectors • Founded on info/communication networks – next generation Internet; e-economies • Dependent on effective reforms in the telecom sector – information infrastructure • Strengthening links among local, national, regional, international networks and markets
Technologies Markets Applications Services Regulations Policies Criteria for Economic Growth Policy & Regulation: Catalyst for – or constraint upon – development?
LIRNE.NET Mission To facilitate institutional reforms for new "network" economies, by building human capital - through research, training and dialogue - as the foundation for effective policy, regulation, governance and management. Activities • External Training Initiatives (for Government, Industry and NGOs) • Research Activities and Reports • Expert Analysis & Commentary on Current Issues • World Dialogue on Regulation for Network Economies
LIRNE.NET www.lirne.net A Strategic Collaboration • Center for Tele-Information (CTI), TU Denmark • Economics of Infrastructures, TU Delft, NL • LINK Centre, Wits University , South Africa • Media@lse, London School of Economics, UK • LIRNEasia, Sri Lanka
WDR Dialogue Theme 2003-04Stimulating Investment in Network Development: Roles for Regulators Defining and Implementing Regulation to Facilitate Sector Investment in Network Development The Challenge – Creating regulation that: • Reduces rather than increases investment risk • Leads rather than lags technology and market developments • Provides a catalyst for investment and growth in network e-economies
WDR Dialogue Theme 2004–2005 Diversifying Investment in Network Development Why? 2003-04 Research and Dialogue identified increasing diversification of potential sources of network investment being stopped by institutional barriers that can be reduced or removed.
Traditional Investment Sources for Telecom Network Infrastructure • The State – PTTs • Private Capital Markets - to state or private monopolies • Donor Agencies – Developing Cos. - to state monopolies
Telecom Reform: Liberalization Phase 1 Investment Sources for Telecom Network Infrastructure • PTTs Corporatized/Privatized Monopoly • Private Capital Markets – primarily mobile • Donor Agencies – shift to private mobile • Equipment Manufacturers – loans • High License Fees – reduced investment • Fixed Networks in Developing Cos – little investment • High Policy/Regulatory Investment Risk
Telecom Reform : Phase II Potential Participation in Network Investment • New Network Operators • Multisector Infrastructure – electricity, water, etc. • Regional/Local Governments • Regional/Local Private Investment • Co-operatives • Public/private Partnerships • VANS/ISPs, Retailers • Depends heavily on policy/regulation turning barriers into opportunities
WDR Theme 2004-05Diversifying Participation in Network Development Organisation of the Research • Pro Poor/Pro Market – with IDRC • Regional/Local Public Sector Initiatives • Public/Private Partnerships