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Telecommunication Policies in Seventeen Countries

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Telecommunication Policies in Seventeen Countries DOCUMENT RESUME ED 258 558 IR 011 713 AUTHOR/ Eward, Ronald S. TITLE Telecommunication Policies in SeventeenCountries: Propocts for Future CompetitiveAccess. INSTITUTION MarTech Strategies, Inc. SPONS AGENCY National Telecommunications andInformation Administration (DOC), Washington,D.C. PUB DATE May 83 CONTRACT NTIA-CR-83-24 NOTE 225p. PUB TYPE Information Analyses (070) Reports - Evaluative /Feasibility (142) EDRS PRICE MF01/PC09 Plus Postage. DESCRIPTORS Competition; Foreign Countries;*Information Networks; Information Services; *International Cooperation; International Relations;Marketing; *Policy; *Telecommunications;Teleconferencing IDENTIFIERS *Data Transmission ABSTRACT This document isa review and study of current and prospective telecommunication policiesin 17 countries with regard to the competitive marketaccess those policies foster or promise. It explores the policies of eachcountry toward information flow that will also have an impacton international competition. The aim of the study is to identify the degree ofcompetitive access allowed U.S. companies in the provision of telecommunicationsand information products and services. The study profileseach of the selected countries with main attention givento the following: (1) organizational structures; (2) servicesstructure and policies; (3) data and telephone services; (4) internationalservices structure and policies; (5 new services; and (6) future competitiveaccess. The 17 countries profiledare Australia, Austria, Belgium, Brazil, Canada, Federal Republic of Germany,France, Hong Kong, Italy, Japan, Mexico, Philippines, Singapore, Sweden,Switzerland, United Kingdom, and Venezuela. Information on all 17 countriesis presented in three tables: Major Telecommunications Entitiesby Country; Market Structures by Service Categories by Country;and Equipment Market Structures and Approval Authorities byCountry. (JB) *********************************************************************** Reproductions supplied by EDRSare the best that can be made from the original document. *********************************************************************** IIIPANTIANNT OF SOMATIC* NATIONAL INSTITUTE Of EDUCATION EDUCATIONAL RESOURCES INFORmATION CENTER IERICI Igib This documenthas been reptoducud es . mewed iron 1hperson of organdation orrionsimp It Mina chArges have boon made to mug** laPrOduCtion QuAkty. POints of wave or opinions stated in 0'3 d0C44 melt do not necomianly rapcosan1 oMrpal NIE position or ocelot 40% titi83-24 TELECOMMUNICATION POL 11ESIN SEVENTEEN COUNTRIES: PROSPECTS FOR FUTURE COMPETITIVE ACCESS PROJECT MANAGERS Jack E. Cole Richard J. O'Rorke, Jr. This report was prepared by MarTech Strategies, Inc. under contract to, in support of, and funded by the Office of International Affairs, National Telecommunications and Information Administration U.S. DEPARTMENT Of COMMERCE Malcolm Saldrigel Secnitary David J. Markey, Assistant Secretary-Designate for Communications and Information May 111113 TABLE-OF CONTENTS PAGE Introduction and Overview 1 Australia 21 Austr:A 43 Belgium 57 Brazil 61 Canada 71 Federal Republic ofGermany 85 France 101 Hong Kong 115 Italy 123 Japan 137 Mexico 159 Philippines 167 Singapore 171 Sweden 177 Switzerland 195 United Kin*dom 203 Venezuela 219 iii 4 PREFACE This review and study of current and prospective telecommunication policies in seventeen countries with regard to the competitive market access these policies foster or promise was performed for the National Tele- communications and Information Administration (NTIA) by MarTech Strategies, Inc.. The principal investigator was Ronald S. Eward of MarTech Strategies, Inc. We wish to recognize the assist- ance of L..Daniel O'Neill in preparing initial drafts of certain countries. We also extend our appreciation to Jack E. Cole and Richard J. O'Rorke, Jr., of NTIA who have contributed many insights and useful reviews. Last but not least, we thank the many comments and con- tributions from officials in most of the countries who cared and took the time and patience to make corrections or offer suggestions. Notwithstanding, MarTech is re- sponsible for the material and judgments in this report. The reader should also remember that the state of these policies is a fluid situation and can change from that presented here. iv INTRODUCTION AND. OVERVIEW Statement of Work International telecommunications and informationservices are cooperative ventures between the United States and other sovereign nations. Thus, the United States cannot unilaterally mandate policies, structures or market opportunitiesin the international arena. While reliance on market forces and the broadest possible exchange of informationserve as the basis of communications policy in the United States,this is not gen- erally the case in foreign countriesor between foreign countries and the United States. In most other countries, telecommunica- tions equipment and service offerings, rates andconditions*, are usually controlled by a government monopoly, whose motiva- tions and objectives may be different than in the United States. Thus, while the United States may believe that competitionand open access to information is a desired policy, many foreign administrations favor an environment of greater control of the flow of information and access to domestic equipmentmarkets. While some changes in policy toward competition intele- communications have been noted in thecase of a few countries, the intentions of the majority of countries remainuncertain. In addition, a number of.countriesare now developing their policies toward Information flow, which also havesignificance for international competition. This study explores these developments in 17 selected countries with theoverall aim of identifying the degree of competitiveaccess allowed U.S. com- panies in the provision of telecommunications andinformation products and services. Toyard this end, the study profile each of the selected countries with main attention pp.id to thetructure and policies, both present and prospective, that willgovn the degree of competitive access allowed U.S companies in e provision of telecommunications and information productsan ervices. The parameters of interest include: The present organizational structure, shoWing the entities responsible for: the provision of telecommunications services; the provision of the major categories of tele- communications equipment, including customer premises equipment,. and any approval necessary for the use of foreign produced equipment; regulations and policies affecting international information flow, such as in-country and foreign information processing by computer and technology transfer. 2. The present governmental policies concerning the pro- vision of domestic and international telecommunications service, including the following: Message Telephone Service Leased Channel Service Data Transmission Remote Data Processing Video Teleconferencing 3. The present governmental policy, other related policy developments, and type approval processes controlling the provision of the major categories of foreign - produced telecommunications equipment, including cus- \tomer premises equipment and its interconnection with public networks. The present governmental policies on information proces- sing, other than data protection legislation, such as limitations onwhere data may be stored or processed,. restrictions on tne use of transmission facilities for the purpose of processing data outside the country, and the policies on valuation and taxation of imports of software. 5. Any differences in the policies identifi d above in how they apply to U.S. traffic or service/h rdware_providers as opposed to how they are applied to tLer countries. 2 6. Future plans, if any, to expand competitive access to U.S. firms in the areas mentioned above, and identify any cases where such changes have already taken place during the past five years. 7. The views of users, overseas consumer groups, or professional organizations in each country, if any, relative to specific needs for competition, lower rates, increased service offerings, and information services which may affect go !rnment policies in the future. The countries included in this study are: Australia Japan Austria Mexico' Belgium Philippines Brazil Singapore Canada Sweden Federal Republicof Germany Switzerland France United Kingdom Hong Kong Venezuela Italy These countries were selected for consideration on the basis of: 1. size of international traffic volume; 2. geographic location; or, 3. promience in information activities. Overview The focus of this study is on the individual countries with emphasis on each nation's particular environment and set of policies governing prospective greater reliance on market competition and foreign competitive access. The study is not a comparative analysis, per se, although comparative observations can be made if care is taken* Notwithstanding, it is felt that it would be instructive and helpful to the reader to summarily compare the countries in an overview fashion to, at least, demonstrate the preponderance of structures and policies existent in the international environment. We emphasize again, though, that it is each country's individuality that is important in this study and not comparPaqU-4-Ugtraction. Market Structure Models For purposes of this limited comparative overview, we recognize and distinguish six (6) possible market structures. The models and their differentiating characteristics are: 1. Government Monopoly (GM) -- The classic case of
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