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Bhutan-Moicreport.Pdf INFORMATION, COMMUNICATIONS AND TRANSPORT SECTORS IN BHUTAN: A SPECIAL REPORT Ministry of Information & Communications Royal Government of Bhutan July 2007 Copyright © MoIC, RGoB TABLE OF CONTENTS FOREWORD i ACKNOWLEDGEMENTS iii EXECUTIVE SUMMARY v PART 1 INTRODUCTION 1 1.1 BACKGROUND 1 1.2 REPORT OBJECTIVES 3 1.3 REPORT STRUCTURE 3 PART 2 SITUATION ANALYSIS 4 2.1 ICT, MEDIA AND POST 4 2.2 TRANSPORT 11 2.3 CHALLENGES AND OPPORTUNITIES 23 PART 3 SIGNIFICANT ACHIEVEMENTS, 2002/03 – 2006/07 28 3.1 ICT, MEDIA AND POST 28 3.2 TRANSPORT 35 PART 4 ONGOING PROGRAMS AND PROJECTS 42 4.1 ICT, MEDIA AND POST 42 4.2 TRANSPORT 49 PART 5 MAJOR TENTH PLAN PROGRAMS AND PROJECTS 53 5.1 ICT, MEDIA AND POST 53 5.2 TRANSPORT 60 PART 6 BEYOND 2013 … 64 GLOSSARY 67 ABOUT THE MINISTRY OF INFORMATION & COMMUNICATIONS 70 Information, Communications & Transport Sectors in Bhutan : A Special Report Ministry of Information & Communications Royal Government of Bhutan Thimphu: Bhutan FOREWORD ver the last few years, developments in information, O communications and transport networks and services have brought dramatic changes to our society. When I joined the erstwhile Ministry of Communications in 1995 as the Deputy Minister, Internet and mobile phones were a distant dream for Bhutan. Coaster buses were few then and civil aviation was not a priority agenda. Now, Internet access, mobile phones, wireless networks and satellite systems have opened up new ways of communicating, finding information, being entertained, and doing business. A number of safer and comfortable passenger transport vehicles have been deployed and routes increased making in-country travel for the public more reliable. Our businessmen, government officials as well as ordinary citizens can now fly to Bangkok and other destinations within the region on a regular basis. This has also led to a significant increase in the number of tourists visiting Bhutan over the last couple of years. The pace of change in the information, communications and transport sectors shows no sign of slowing as is evident from this report. In particular, the report looks at the contribution that such networks have made to our national economy and society in the last five years; it reviews ongoing programs and projects, proposes plans, programs and projects for the Tenth Plan, and suggests the way forward for the next decade. It is hard to make predictions about new technologies with any certainty, and we must thus be prepared for fresh developments and unexpected changes. However, based on the best current knowledge, this report predicts a paradigm shift in the information, communication and transport networks and hence in the provision of associated services over the next decade. We are preparing to expand existing information, communications and transport i Information, Communications & Transport Sectors in Bhutan : A Special Report infrastructures and build new ones. The need for effective regulation of these sectors would continue to increase but regulators should identify areas where the regulatory burden could be lifted. While regulators must ensure that competition develops wherever possible, they need to protect the interests of consumers through fair and proportionate regulation where competition does not develop. This document is being published as a special report to inform the people of Bhutan on the developments that have taken place and will take place in the information, communications and transport sectors. Among others, it clearly sets out the most significant challenges that Bhutan faces in these sectors, and highlights opportunities to overcome these challenges. I hope that it will be a useful reference particularly for the new elected Government in 2008, and look forward to receiving views on how best we can together establish and ensure vibrant and competitive markets for the information, communications and transport sectors in Bhutan. I would like to dedicate this report to the Bhutanese people and others with whom I have worked and sailed through my life in the service of the Tsa-Wa-Sum. TASHI DELEK! Leki Dorji Minister Ministry of Information & Communications 29 June 2007 ii iii Information, Communications & Transport Sectors in Bhutan : A Special Report ACKNOWLEDGEMENTS The Policy & Planning Division of the Ministry of Information & Communications gratefully acknowledges and expresses deep appreciation to all those who contributed to the publication of this report. The document contents, photographs, figures and tables are courtesy of the departments/ divisions, autonomous bodies/agencies, public corporations and officials/individuals dealing and concerned with thedevelopment of information, communications and transport sectors in Bhutan. ii iii Information, Communications & Transport Sectors in Bhutan : A Special Report iv Information, Communications & Transport Sectors in Bhutan : A Special Report EXECUTIVE SUMMARY Over the last two decades, developments in information, communications and transport networks and services have brought dramatic changes to our society. These sectors continue to fuel Bhutan’s socio-economic growth and will become even more vital in light of the impending political changes taking place in the country. Inspired by His Majesty the Fourth King’s vision of maximizing Gross National Happiness, Bhutan has always placed her people at the centre of its development efforts. As an active member of the global fraternity, Bhutan has also integrated the SAARC Development Goals and UN Millennium Development Goals as part of its national development targets. The ICT sector has come a long way since the first telephone network in Bhutan was established in 1963. Fixed-line teledensity has increased from 2.8% in 2002 to 5.3% in 2006 and mobile teledensity, as of December 2006, has reached 12.3%. Computing and networking is gradually becoming a part and parcel of our everyday life. Competition has been introduced in the ICT market with a view to rationalize tariffs and offer more choices for Bhutanese consumers and the public at large. All stakeholders, including the Government and industry, now recognize the important role that ICT plays in enhancing good democratic governance. The media sector also saw some significant changes in its market structure and institutional set up. Two private newspapers have been licensed and 49% of Kuensel shares divested to the public. Two private FM radio stations are on-air including Kuzu FM 90. The local music and film industry is becoming more competitive, innovative and indigenous. BBS, as the national public service broadcaster, provides both radio and television services across the Kingdom. Its FM radio service covers all 20 Dzongkhags. Currently, 44 towns in Bhutan can watch BBS TV directly. The Department of Information & Media has been established to coordinate and enable the smooth development of the media sector. The Bhutan InfoComm & Media Authority has been de-linked from the Ministry of Information & Communications making it autonomous in the delivery of its regulatory mandate as per the provisions of the Bhutan Information, Communications and Media Act 2006. Pertinent Rules and Regulations are being put in place to facilitate accelerated development of the ICT and media markets and improve delivery of services. As part of its modernization program, Bhutan Post has launched several new products and innovative services. Despite the downturn in postal businesses worldwide, Bhutan Post continues to move ahead headstrong in the delivery of postal services to every nook and corner of Bhutan through its well-established national network of post offices. v Bhutan Post also provides public transport services in Thimphu. Information, Communications & Transport Sectors in Bhutan : A Special Report Privatization of passenger transport services began in 1985 on a pilot basis and was achieved fully by October 1991. The Road Safety & Transport Authority was established in January 1997 pursuant to the Road Safety and Transport Act. In addition to its traditional function of monitoring and regulating passenger transport services, other mandates include promoting road safety, traffic and transport management, regulation of taxis and other commercial vehicles, and development of transport infrastructure and facilities. Increase in the number of vehicles in the country has been dramatic during the last one decade, particularly in the larger towns of Thimphu, Phuentsholing, Samdrupjongkhar and Gelephu. The number of vehicles has increased by 145% between 1997 and 2006. The Department of Civil Aviation, established in January 1986, is responsible for prov- iding air traffic services; operation and maintenance of airports; and, setting and monitoring safety standards for safe and efficient operation of air services. The department has undergone major transformation over the years, evolving from being a small agency to a multifaceted and professionally responsible organization. The Civil Aviation Act 2000, the Bhutan Air Navigation Regulations, and other international Requirements provide the legal and regulatory framework for safety and security of air transport operations in Bhutan. Drukair is the only airline at present. Operation of international air services is governed by the rights and privileges agreed in the Bilateral Air Service Agreements. Bhutan has such bilateral arrangements with Bangladesh, India, Myanmar, Nepal and Thailand. The total number of Drukair passengers, including 3rd, 4th and 5th freedom traffic, increased from 63,194 in
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