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NATIONAL ICT POLICY OF PNG

NATIONAL ICT POLICY OF PNG. Presentation Outline. Current Infrastructure Hindrances to ICT Service Delivery in PNG Government’s Response through Policy National ICT Policy 2008 Phase 2 Reforms Path to Open Competition Community Service Obligation Supporting Arrangements

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NATIONAL ICT POLICY OF PNG

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  1. NATIONAL ICT POLICY OF PNG

  2. Presentation Outline • Current Infrastructure • Hindrances to ICT Service Delivery in PNG • Government’s Response through Policy • National ICT Policy 2008 • Phase 2 Reforms • Path to Open Competition • Community Service Obligation • Supporting Arrangements • Questions and Challenges in Monitoring and Evaluation

  3. Population: 6.6 Million3 Mobile Operators 1 Fixed Line Operator 11 Internet Service Providers Current ICT Infrastructure: • 70,000 subscribers for fixed line, • Over 2million subscribers for mobile cellular services • 20,000 3G subscribers • Network of microwave radio, satellite and intra-city optical fibre transmission systems • International links to over 160 countries in the world and domestic services to all urban centers and major villages. Department of Communication & Information [ Confidential ]

  4. Hindrance to ICT Service Delivery - Prior to Competition • Monopoly in ICT Market • The incumbent operator, Telikom PNG, supplies fixed line and mobile telephone services in main cities: Port Moresby and Lae. The cost of SIM Cards, local and international calls were very high • Factors limiting investment in rural and remote locations include the high cost of network deployment (rugged physical terrains), particularly civil works in the absence of supporting infrastructure, land ownership issues, low population density, and small market sizeLack of access to ICT infrastructure and services to over 80% of the total population • High cost of service • Internet service penetration is very low

  5. Time Line: Monopoly to Competition • 2005 • Move to introduce competition in Mobile telephone • Move to formulate National ICT Policy • 2006 Work on formulating National ICT Policy commence. ICCC commenced process on new mobile telephone licenses • 2007 • Two new mobile telephone licenses awarded to two new operators. Digicel commenced roll out immediately • 2008 • National ICT Policy installed. • 2009 • Implementation of ICT Sector Reforms • November 2009, Parliament passed a National ICT Act • 2010 • National Information and Communication Technology Authority (NICTA) succeeded Pangtel • Regulations introduced • 2011 • Additional licenses issued

  6. Government’s Response through Policy Directive • Introduction of Mobile competition in 2007. • Further refinements was undertaken then and in 2008, a National ICT Policy was installed. • ICT Policy 2008 sets a direction towards reforming of the sector, driven by the combination of staged introduction of competition and transformational change of the incumbent Telikom PNG into a viable and efficient competitor. • The ultimate goal is to introduce competition in the ICT sector • Phase 1: Review of regulatory structure, CSO considerations, market, transformation change of Telikom • Phase 2: Establish regulatory structure / legislative basis for increased competition, Community Service Obligation

  7. National ICT Policy 2008 – Key Objectives To secure the social & economic benefits of an efficient ICT sector in such areas as education, health, national security, justice, agriculture, government administration and ecommerce. To have an efficient ICT infrastructure as the backbone of ICT policy with the use of technology appropriate to circumstances of PNG. To substantially increase access to basic telecommunications services across PNG with service to be available at affordable prices. To have a transformed and efficient Telikom PNG. To enjoy effective and sustainable competition to deliver market discipline and economic benefits. This competition will be built upon a clear and achievable ICT policy with a path to take PNG from the existing environment to competitive markets. There will be appropriate and clearly defined powers and functions of independent but accountable regulators. To seek improved international capacity and connectivityto help PNG to truly become part of the international community. Aims to secure the benefits that can flow from increased availability and use of the Internet.

  8. National ICT Policy Phase 2 – specific reforms Major reform proposals outlined below were implemented between 2009 and 2010 • The Path to Open Competition (From Monopoly to Competition) • Licensing Arrangements • International Gateway Liberalization • Wholesale regulation and access • Retail regulation and pricing • Community Service Obligation • Universal Access Scheme (UAS) • Supporting Arrangements • Institutional Arrangements • Information Security • Technical Regulation

  9. Liberalization in the Telecommunication Sector Reforms aim to remove barrier to market entry • Single ICT Regulator – National Information and Communication Technology Authority (NICTA) • Simple, three-tier horizontal licensing structure • Technology and service neutral operator licenses • Remove barrier to market entry – individual and class licenses • Clear mechanism for spectrum allocation and assignment

  10. Institutional Arrangements A critical reform exercise was the disbanding of the dual regulatory system and set up of a new converged ICT regulator called National Information and Communication Technology Authority known as NICTA • NICTA succeeded Pangtel on 29 October, 2010. • NICTA takes on the economic functions previously held by the Economic Regulator, Independent Consumer and Competition Commission (ICCC) • These economic functions, among others, include: • facilitating wholesale access and interconnection, including recommendations for declaration of services and arbitration powers to determine terms and conditions of access under a negotiate/arbitrate model • administration of any necessary retail price regulation for the ICT sector

  11. UNIVERSAL ACCESS SCHEME (UAS) In response to factors limiting investment to rural and remote parts of the PNG, the introduces Universal Access Scheme as a vital component of its Policy objective . • A new Universal Access Scheme (UAS) is established under the National ICT Act 2009 that retains the existing mandatory roll-out obligations but improves the effectiveness of the arrangements • A UAS Fund will be established to meet the other Government objectives for the UAS including Internet access and voice access outside the mandatory roll-out areas • The UAS Fund will be financed by a combination of: • industry levies based on a percentage of net revenues (gross revenues less interconnection payments) of licensed operators; • donor funding (loans, grants, gifts); and • direct Government funding.

  12. Demonstration Projects • Designed to test the mechanisms and procedures of the UAS and build capacity for NICTA. A loan of US$15 million was obtained from World Bank • Technical Assistance/Capacity-building for NICTA to manage the UAS including project identification, review, administration, monitoring and evaluation, plus relevant regulatory support • Technical Assistance for the Department on telecoms/ICT policy • Financing for the first three UAS-funded projects as a “demonstration • UAS Subsidy Projects (est. US$13m) • Chimbu: telecommunications network expansion (any technology), plus public access facilities (minimum no. per 5 x 5 km area with a population of 500 inhabitants or greater ) • E. Sepik: telecommunications network expansion (any technology), plus public access facilities (minimum no. per 5 x 5 km area with a population of 500 inhabitants or greater) • Internet cafes in 60 District Centres • Subsidy for establishment of Internet cafes; franchise model of operation

  13. Expected Outcomes • An increased percentage of the population in PNG will have access to telecommunications services by 2015. While much of this will comprise telephone coverage, the availability of a public access point (e.g., public phone) in communities or within a 5 km walk, is included in this outcome. • Internet access will have increased with at least one Internet access point (e.g., Internet café) available in every district; • There will be a measurable increase the use of information and communications technologies (ICTs), in every district. • The resources and subsidies will have been used to leverage increased investment from the private sector for rural communications development. • The service providers will have implemented sustainable business models that provide a positive contribution to the economic development of the rural areas. • ICT training, content development projects and computer literacy will have increased in the target districts as a result of increased access to Internet and computers. • The retail cost of phone and Internet services to consumers will decrease. • The UAS Secretariat within NICTA will be fully functional.

  14. Information Security Further work is required to ensure: • Relevant laws are developed to control and prohibit attackson the security and integrity of computer systems, including hacking, illegal interception and interference with the availability of computer systems • Clear procedures meeting international privacy standards will be established for government access to communications and stored data when needed for the investigation of crimes. These procedures should be aimed at providing an adequate level of assurance that the Government cannot unjustifiably monitor private communications • The new privacy standards will be developed in a national law for interception of communications (telephone calls, email and other electronic communications), and for search and seizure orders for computer data • Appropriate laws and procedures will be developed to facilitate electronic payments and to ensure that consumers and small businesses who transact business online have recourse if transactions fail or online purchases are unsatisfactory. These laws and procedures will include protections to prevent merchants from misusing consumer data • PNG’s existing intellectual property laws will be reviewed to ensure that they provide adequate protection for digitized forms of intellectual property • Procedures will be established for taking all critical systems offline in the event of a war, disaster or civil disturbance which might otherwise place those systems at risk

  15. Questions/Challenges of Monitoring/Evaluation • Has access to ICT/telecommunication infrastructure and services increased? • Is competition effective? • Will competition be sustained over the next few years? • Is there improved international connectivity and capacity? • Is there increase availability and use of internet? • Information security: • Are our computer systems protected • Are users of electronic transactions protected

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