Liberalised Environment in Communication Networks
As communication networks operate in different countries, the concept of a fully liberalised environment varies. This debate compares the UK, USA, and Europe, highlighting the need for appropriate laws and a conducive investment climate. Progress in Africa, challenges of corruption, and investments in China and other Asian countries reflect the evolving landscape of liberalisation in the telecommunications sector.
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Presentation Transcript
Day 1 Exercises 3 and 4 Feedback The Liberalised Environment AFRALTI
Fully Liberalised Environment Different things to different people The UK environment is very different from USA and Europe Interesting subject to debate AFRALTI
Clearly today as we operate our communications networks in many countries of the world we are working in a Fully Liberalised Environment . Clearly this means different things to different people. In the UK there exists a highly competitive environment with over 150 providers of communications. If you undertake a comparison with the USA and Europe, which also claim to be liberalised, this makes interesting reading and raises substantial subject matter for debate. AFRALTI
Liberalisation Process Government gives up responsibility for provision of communications services Act of Parliament Creation of Laws to protect Investors A climate for Investment AFRALTI
In a monopoly environment it is clear that communications is the responsibility of government. However the first thing to be considered when talking about liberalisation is an appropriate Act of Parliament to clarify the governments position and intentions. Closely followed by an Act of Parliament is the creation of appropriate laws to protect any potential investors wishing to enter the market. Companies and shareholders will not invest unless the climate is right for investment. AFRALTI
Progress in Africa Corruption is still a problem Vodacom and MTN are expanding outside South Africa Mobile has surpassed fixed lines in Africa AFRALTI
Investment Today China Korea Other Asian Countries 160 Countries have Liberalised their Telecommunication sector AFRALTI
The case of China The question is has China Liberalised? Certainly many investors are starting to make money but not in the traditional manner. Competition does exist between, China Telecom, China Unicom, China Netcom (CNC) and China Mobile (CMCC) but apart from a 3% stake by Vodafone in CMCC they are all networks run by the government departments. AFRALTI 8
Process Telecommunications Act New Laws introduced Privatise Incumbent Liberalise CPE Provision Introduce Competing Mobile Networks Second fixed line provider International Gateways (normally last) AFRALTI
Issues to be faced Culture Interconnection Recruitment of suitably educated personnel Expectations Coverage Incumbent behaviour AFRALTI
Opportunities Creation of entrepreneurs ie football results, stock market information, weather forecast, gaming etc Mass market intelligent telephone with email ie Amstrad Emailer Mobile phone cases and accessories and tailored calling tones AFRALTI
The Case of Hong Kong No restriction on choice of technology for mobile services. PHS, CDMA, GSM 900 and GSM 1800 all working happily alongside each other. The customer has maximum choice AFRALTI
