Highlights of the session “Perspectives of technology leaders and infrastructure providers”

The new cycle of progress in the telecommunications sector, with the expansion of wireless communications, with the spread of broadband solutions, and with the advances of information and communications technologies, opens new perspectives to promote access to information and knowledge throughout the Americas Region.

In effect, Telecommunications constitute one of the most dynamic branches of the economy in the current world and are an important instrument to speed up the transformation of the countries of the Region into knowledge-based societies.

With these views in mind, during the IV Assembly of CITEL, it was organized a round table with leaders of the industry and infrastructure providers in the area of telecommunications to capture their visions on subjects of technical and regulatory nature that affect investments and telecommunications business in the Americas Region.

At the panel, participants from government, private sector and regional organizations had an occasion to make a reflection and identify the most adequate paths to improve and expand telecommunications, as well as examining new alternatives to better promote the social and economic development of the American peoples.

It is worthwhile to summarize some highlights of this session to the benefit of other representatives that were unable to participate.

The telecommunications market is moving towards convergent broadband wireless technology. Seamless mobility, continuous and transparent connectivity and access to services across different networks, and ubiquitous communications have become the characteristics of the new telecommunications paradigm. Telecommunications are not limited to voice anymore. Today there is a clear trend for increasing demand for differentiated and personalized services, encompassing voice, data and video.

Telephones are no longer used only for calling. We are moving towards a world of cell-phone TV and interactive TV programming. There has been a migration towards IP broadband and rapid Internet access. Terrestrial, satellite and cable TV are moving towards IP TV and mobile TV. Terminal devices are to converge into a single solution over IP, all talking to each other.

Wireless systems have become a ubiquitous reality in personal and local networks as well as in metropolitan areas with the deployment of technologies such as WiFi, WiMax and 3G.

Broadband prices have dropped exponentially and the trend is towards lower prices as technology advances. New market opportunities for cost-effective wireless broadband services and applications will be created.

For instance, WiMax advanced radio technology will deliver wide area personal broadband services in fixed and mobile environments.

CDMA will be predominant in the 2007-2008 time frame. OFDM modulation methods will then be predominant in the next generation of wireless systems. In addition, OFDM coupled with MIMO techniques being developed at present will achieve considerable increase in capacity, peak rates and coverage.

Most of the market growth is seen in services and wireless data, which will dominate growth in the next 5 years. The market size for 2010 will be US$ 1500 billion, of which 54% will be wireless, being 33% wireless data.

ICT investments increase productivity as a result of innovation in business techniques, use of sophisticated infrastructure and commercial Internet applications.

Wireless systems and technology are changing habits and working methods. There is a clear understanding that investments on wireless broadband systems have a positive impact on labour productivity. Studies conducted in the USA have showed that labour productivity increased 1,35% annually from 1973 to 1995 and by 2.54% from 1995 to 2000. Two thirds of this increase was due to the introduction of ICT technologies.

Increase on productivity has led to acceleration on standard of living improvement. In the USA the standard of living used to double every 24 years; at present, this takes only 14 years.

Also noted was the influence of mobile telecommunications and the Internet on economic growth. For each 1% increase in mobile penetration, GDP per capita goes up by US$ 240.00. For each 1% increase in Internet penetration, GDP per capita goes up by US$ 593.00.

The regulatory environment was considered an important issue during the presentations and discussions. In many countries the current regulatory environment favors regulations for every technology. For example, for public switched networks, cellular systems, cable, satellite, audio and televised broadcasting, some of them dedicated to one type of service and others combining voice, data and video services. In other words, they are regulated according to infrastructure or the available media. It was advocated that new regulatory frameworks must seek regulations that favor convergence. Examples of this have been seen in Europe and Brazil, where services rather than technology are regulated. Furthermore, investors look for stable regulatory and legal environments, enforced in a transparent manner, enabled by a regulator with authority, expertise and independence, with a minimal and narrowly focused regulation and efficient dispute-settlement mechanisms. It was agreed that Governments and the industry must continue to collaborate in order to bring benefits of the Information Society to every community.

Proper and efficient use of the radio electric spectrum has been identified as a major concern for regulators. New regulations should provide spectrum to support the provision of required services and adopt technology neutrality. Although there is sufficient spectrum to allow the deployment of new services and technologies, Citel should establish guidelines to improve existing legal and policy framework governing its use. The idea is to allow for flexibility in the use of the radio spectrum and define spectrum policies designed to ensure maximum benefits to the end user, foster innovation and harmonize national and international interests.

CITEL is the forum where Region 2 administrations are able to develop guidelines, proposals and recommendations that foster the growth of telecommunications, and through this, accelerate social and economic progress in the Americas Region. It is also the place where these administrations can work together to influence events in ITU conferences and assemblies. There is general agreement that CITEL should become the pre-eminent telecommunications forum of the Americas.

Dr. José Leite Pereira Filho
Counselor
ANATEL-Brazil