7th Private Sector - Chief Regulatory Officers (CRO) Meeting

Bangkok, Thailand, November 13th, 2016

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CRO – Introduction for New Participants

Opening Remarks by Chairman

• CRO is a platform for private sector representation.

• CRO demonstrates ITU’s commitment toward

strengthening the private sector’s contribution to BDT’s

work, and offers a valuable platform for the true

representative of the needs and the concerns of the private

sector.

• The ultimate goals is to adopt an output-oriented or

result-based approach, to showcase private sector's

capabilities and willingness to be openly engaged with the

public sector.

CRO’s Objectives

Securing confidence

Raising dialogue

Serving as a tool to better define and reach consensus on industry issues

Promoting ICT development

Facilitating the fulfillment of ITU-D's mission

Gaining industry-wide acceptance as an intellectual forum

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CRO – Introduction for New Participants

• CRO’s mission include following priorities in

converged ICT ecosytem:

(1) Contributing to Optimal Enabling Environment

(2) Promoting Market Access and Infrastructure, and

(3) Supporting to create added values of ICT

applications: e.g., IoT or IoE

• CRO will fulfill its mission by drawing its participants'

attention to the importance of sharing workable

proposals on projects and initiatives that can engage

regulatory/public bodies and can also contribute to

achieving SDGs.

• CRO provides a neutral platform to serve the needs of

industry by sharing, networking and implementing

potential project(s) through multi-stakeholder

partnership.

Regular Meetings

Fostering of Dialogue

Alignment of CRO Agenda with GSR and other ITU Platforms

Participation from ITU-D Members

Proposals for Private-Public Sector Engagement

CRO’s Mechanism

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CRO – Contributions in 2016

A call for specific proposals and actions was launched within the CRO in March 2016.

Potential partnership proposal(s) were received in such areas as digital financial service and universal service.

CRO’s active advocacy efforts attracted some regulatory bodies to express interest in engaging with the private sector through public-private partnership in potential project(s).

Progress Updates on 6th CRO

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CRO – Progress Updates

Proposals received (10 required, 2 received)

Digital Financial Inclusion

Emerging Areas of Focus/Universal Service Obligation

ITU is ready to act as an executing agency for any potential projects, which CRO develops and agrees.

CRO will remain aligned with the fulfillment of key SDGs

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CRO – Proposal 1 on Digital Finance Service

At the 2015 World Bank Group-IMF Spring Meetings, the World Bank Group and public and private sector partners issued numeric commitments to help promote financial inclusion and achieve Universal Financial Access by 2020 (UFA2020). ITU, through CRO contributing to the UFA2020 goal, could help achieve this goal.

Financial Inclusion (Proposal 1)

Stakeholders: Telecom operators, financial services providers (e.g., Master Card), telecom regulators, financial regulators

Status: MasterCard submitted a concept on digital finance service, for which ITU is ready to act as an implementing agency when CRO members agree on the project, while encouraging multistakeholder partnership.

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CRO – Proposal 2 on Universal Service

USO (Proposal 2)

Stakeholders: Telecom operators, technology companies (e.g., Intel), last-mile users, regulators

Status: Intel submitted a concept on universal service obligation, which is still under the discussion for consensus on its scope and ways of implementation. It can be further discussed and explored, if any member(s) expressed interest.

The 8th CRO Meeting at GSR-17

14th of July 2017 - Bahamas

Proposed Themes & Industry Priority Areas for CRO 8th and GSR-17

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CRO aims to provide ITU-D members with an open platform to enhance public-private partnership through sharing industry trends, networking among industry leaders, and raising resources to implement potential project(s) agreed on emerging issues in converged ICT ecosystem: e.g.,

Industry Issues and Trends

Digital

Services

Despite the use of the acronym ICT, regulations remain telecom – centric in a

converging industry, causing an asymmetric effect: telecom regulated versus non-

regulated IT-based (e.g. OTT, IoTs….)

Modernise regulatory policies and frameworks to align with industry and market

developments

Data

Regulation

Many ICT services are data-based; data rules need updating, including enabling

cross-border transfer and management (e.g. storage for disaster recovery as per

banking sector); networks are becoming centralized as part of increasing cost and

operational efficiencies

Spectrum

Management

Many markets have opaque or low grade spectrum management planning;

spectrum policies need to be in place and applied in a timely manner to enable

availability of sufficient and appropriate frequencies to meet rising user demand

and new technologies

Taxes, Fees

and Charges

Multiple fee / taxation levies are imposed resulting in inflated costs for resources

(e.g. spectrum), the absence of cost-related accountability (e.g. regulatory authority

operations), and un/under-used USFs and scientific & research funds( etc…)

Equivalent taxes are not imposed to OTTs and other industries

Data

Regulation

Spectrum

Management

Taxes, Fees

& Charges

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Potential Themes for CRO & GSR17

Net Neutrality

OTT / IoT services versus

regulated telcos

Industry regulation versus

market competition rules

− Ex ante versus ex post

approaches

Market definitions

Spectrum Management

4G/5G allocations

Spectrum pricing

practices

WRC-15 implementation

WRC-19 preparation

Renewals

Taxes, Fees & Charges

Annual fees/Royalties

Regulatory fees

Effective tax burden

USF / ICT fund

Pprovide a platform

through the IMF and

World Bank

Data Regulation

Consumer protection

rules

Data protection laws

Cross-border data sharing

/ management / storage

Commercialisation of

data

Cyber security

• Internet governance (Capacity Building) • Incentives for investment• Cross sector collaboration• Partnership opportunities with Gov/ITU

Taxes, Fees & Charges Data RegulationSpectrum ManagementDigital Service

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CRO - Future Work

Implement the financial inclusion proposed in some countries.

Communicate and facilitate regulators to partner and implement the potential project(s) agreed.

Call for proposals of partnership, which can contribute to achieving the SDGs, through closer collaboration with public sectors including regulatory bodies from the countries.

Brainstorming on the future direction of CRO for more valuable products to ITU members and partners.

Report results in the next CRO Meeting