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Roberto BLOISDeputy Secretary-General

International Telecommunication Union (ITU)

ICC Africa Regional MeetingAfrica’s Role in the Global Economy

Abuja, Nigeria20-21 November 2000

International Telecommunication Union (ITU)

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The ITU: Oldest inter-governmental organisation with 189 Member States and more than 600 private sector members. For the past 135 years, has been playing central role in co-ordinating the development of global networks and services. Today, this role is even more important as the wave of transformation into the digital economy sweeps through least developed, developing, transition economies and industrialised countries.

The ITU is creating a level-playing field through global standards, technical assistance and a forum for the harmonised development, access and use of e-business technologies.

African countries must seize the opportunities of this digital revolution to re-engineer their economies and play an active role in the networked economy. But the challenges need to be addressed...

International Telecommunication Union (ITU)

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Agenda for Presentation

Barriers to E-Business

The Role of the ITU

Recommendations

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Some Barriers to E-Business

•Poor and expensive access to ICT infrastructure and basic telecommunication services.

•Inappropriate policies to encourage competition, attract investments and break-down monopolies.

•Inadequate network payment, banking, security and trust services.

•Low level of public awareness on e-business issues.

•Lack of funds and initiatives to start e-business pilot projects.

•No strategies, policies, legal and regulatory framework.

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24

29

32

50

65

92

Senegal

Mozambique

Ethiopia

Sierra Leone

Guinea

Uganda

Africa, Internet monthlyaccess charge, US$

As % of GDPper capita

107%

45.3%

118%

76.8%

69.6%

17.6%

Barrier: The relative monthly cost of Internet services

Source: ITU 1999 “Challenges to the Network: Internet for Development”

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300

2500

4800

6000

9000

11000Kenya

Armenia

Nigeria

Argentina

Ghana

USA

Barrier: The high cost of leased lines (month/US$)Source: ITU

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Barrier: The high cost of Internet services - Figures in US$/month Source ITU

100

121

79

50

50

20

Kenya

Armenia

Nigeria

Argentina

Ghana

USA

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Barrier: Absence of environment (regulatory framework) to favor competition attract investments and break down monopolies

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

1992 1993 1994 1995 1996

Competitive

markets

non-competitive

markets

Network growth under monopoly and competitionSource: ITU Telecommunication Indicators Database

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Challenge: Identifying the parties in an e-business transaction

“On the Internet, nobodyknows you’re a dog…”

Identification isthe Challenge

The faceless nature of e-business increases the need for positive identification of the parties to a transaction. In e-business, it is important to know if you are dealing with a dog.

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Challenge: Establish a legislative framework for the use of

certification services to build trust in electronic transactions

Results of an ITU survey on the use of certification for building global trust

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Role of ITU in E-Business

Framework for GlobalCo-ordination Policy and Regulatory

Assisting Developing Countries The ITU Action Plan to Bridge Digital Divide

Building Global Connections The ITU Standards

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ITU Role: Policy and Regulatory

Global Forum for Policy and Regulatory Issues

•ITU Regional and Global TELECOM events - ITU Asia TELECOM (4-9 Dec 2000 Hong Kong, China)

•World Summit on the Information Society (WSIS)2003, venue to be decided - Switzerland or Tunisia

Strategic Planning Workshops for Regulators

Internet Case Studies, Surveys and Policy AnalysisAnalysing the requirements and needs for E-business

Experts Meeting on Electronic Signatures and Certification Authorities

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Building Global Connections - ITU Standards

Access to E-Business Services, Security and TrustUsers and Consumers: Digital, Analogue and cable modem standards for user access to the Internet (V.90 and ISDN standards)

Businesses and Service Providers: Broadband Internet Access for e-business and Internet service providers

Building Global Trust and Security - Standards to establish identities of parties to e -transactions, Digital and Attribute Certificates, Digital Signatures, Certification Authorities and Certificate Distribution Systems

M-Business/Commerce and Wireless Internet (IMT-2000)

Global Standards for high speed 3G digital mobile

Fair and equitable access to the radio-frequency spectrum

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ITU Standards - Building Global Connections

Digital, analogue and modem standards

High speed digital mobile(IMT 2000)

Broadband IP standards

CertificationStandards

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ITU is laying the foundation for high-speed Mobile InternetIMT-2000 will be the Platform for E/M-Commerce

… Rapid evolution towards Mobile Internet as highspeed digital mobile (3G) networks, services andsolutions are rolled-out...

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ITU Role: Assisting Developing Countries

ITU Digital Divide Action Plan

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ITU Action Plan to Bridge the Digital Divide

Sector Reform: Creating an environment conducive to mutually beneficial partnerships and sustainable ICT growth.

New Technologies: Providing access to new technologies on a fair and equitable basis to men and women.

Rural Communications: Facilitating rural communications and Universal Access.

Private Sector Participation: Establishing a framework to encourage private sector participation in ITU activities.

Human Resources Development: Building local capacity in ICT through human resources development.

Least Developed Countries: Implementing special programmes to assist least developed countries.

A Special ITU Development Initiative: Electronic Commerce for Developing Countries (EC-DC)

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ITU EC-DC Initiative

1. Assist in Building the E-business Infrastructure

2. Build Local Capacity in E-business Technologies

3. Address E-business Policy and Regulatory Issues

4. Neutral and Non-Exclusive Alliances with Industry

The ITU Electronic Commerce For Developing Countries (EC-DC) Objectives:

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The Status of EC-DC

o Launched in March 1998, at the ITU WTDC in Valletta, Malta and Received Bangemann Award in June 1999 in Stockholm, Sweden.

o Cited in Time Magazine (July 2000) and many national and international media as an activity to watch out for.

o Partnership Agreements signed with the World Trade Centre (WTC), WISeKey and FUNDANDINA.

o Support of several leading ICT companies with more than $7 million already contributed.

o Large scale Deployment of E-Business Infrastructure and services (more than 110 countries).

o Other Projects and activities in all Africa, Asia, Latin America, and Arab States Region.

o Conference for 120 countries (27-29 Nov 2000) at the ITU HQ in Geneva (WISEWORLD 2000).

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112 Countries Participating in EC-DC

Africa: Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Côte d’Ivoire, Eritrea, Ethiopia, Gabon, Ghana, Guinea, Guinea-Bissau, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Senegal, Seychelles, South Africa, Tanzania, Uganda and Zimbabwe. Americas: Argentina, Bahamas, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Cuba, Dominica (Common-, wealth of), Dominican Rep., Ecuador, Guatemala, Honduras, Jamaica, Mexico, Panama, Peru, Saint-Lucia, St. Vincent & The Grenadines, Trinidad & Tobago, Uruguay, USA and Venezuela. Arab States: Algeria, Bahrain, Egypt, Jordan, Lebanon, Morocco, Oman, Palestine, Qatar, Syria, Tunisia and United Arab Emirates.Asia Pacific: Australia, Bangladesh, Bhutan, Brunei Darussalam , Cambodia, China (People’s Rep. Of), Fiji, India, Iran, Korea (Rep. of), Malaysia, Maldives, Mongolia, Nepal, New Zealand, Pakistan, Philippines, Samoa (Independent State Of), Singapore, Sri Lanka, Thailand, Vanuatu and Vietnam.Europe & CIS: Armenia, Belarus , Bosnia Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, France, Georgia, Greece, Hungary, Italy, Malta, Monaco, Portugal, Kyrgyzstan, Romania, Russia, Slovakia, Slovenia, Spain, Switzerland, Turkey and

Ukraine.

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ITU Partners in EC-DC

Partnership Agreement with:WISeKey SA and World Trade Centre (WTC)

Participation of:•Ministries of ITU Members States•Telecom Operators and Regulators•National Banks and Financial Institutions•Trade Points and Business Organisations•Internet Service Providers•Regional Telecommunication Organisations•Private Businesses and NGOs•Chamber of Commerce and World Trade CentresMore than 225 organisations from 110+ countries

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Create Regulatory Framework to Favor Competition better services and wider availability of ICT.

Adopt Appropriate Pricing Policies for Internet Access and the provisioning of Internet services - The more people use the Internet, the more value it will have for businesses and consumers.

Establish Legislative Framework for digital transactions, recognition of electronic signatures and guidelines for the operation of certification authorities.

Encourage active participation of local financial institutions (banks) to provide payment services to businesses.

For Africa to take advantage of the new technologies and become active participants of the global economy, they need to :

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Consider ICT development as a national priority.Create national E-commerce Task force including all

major stakeholders (governments, industry, businesses and the educational sector)

Put in place Legislation for data protection, copyright intellectual property rights and consumer protection.

Forge Alliances and Strategic Partnerships. No single entity holds complete answer to e-business. Alliance is key.

Encourage the development of mobile servicesthrough fair, equitable and open processes for obtaining mobile licenses.

Recommendations

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Thank You for Listening

http://www.itu.int