Formal standards-setting for global telecommunications and information services. Towards an institutional regime transformation?

This paper reviews the nature and economic significance of the activities carried on by standards development organizations (SDOs), focusing in particular upon the telecommunications and information technology standards-setting work of the government-created public and quasi-public institutions, and the international treaty organizations that constitute the formal standards sector. It documents the current sources of tension within this regime and appraises various proposals for organizational reforms. There are especially pressing needs for adaptations of the inherited institutional mechanisms for technical coordination to provide for inter-operability in the development of new telecommunication networks and services. Among the manifold sources of strain on the old structure, those which seem at once most fundamental and potentially most threatening are the recently heightened industrial perceptions of the potential strategic value of standards as tools of business competition and national policy, and the incentives for ‘institutional by-pass’ that have been created by the rapid proliferation of technological possibilities. The paper considers some alternative organizational models for negotiated standard-setting that might be able to withstand, and better harness these forces for the continued production of standards as public goods.     

The transformation of the mobile telecommunications industry in Pakistan: A developing country perspective

This paper offers a rare insight into the reality of the mobile telecommunications market transformation in Pakistan. Our analytical framework treats the mobile telecommunications market as a complex socio-technical system. Specifically, we define the telecommunications market as being composed of technology standards and three sets of social actors that include government institutions, network and service providers, and users. In the case of Pakistan, these social actors together determine the adoption of standards and services, and thus shape the trajectory of the market change. Our case study provides evidence that a pro-competition policy is imperative for mobile telecommunications development in developing countries, and an independent regulator is critical in promoting technological innovation.     

Telecommunications privacy and the information society

Determining the appropriate actions to insure telecommunications privacy in the domestic telephone system presents unusually complex and interrelated considerations of law, technology and foreign policy. In this article, the author explores these considerations as they pertain to possible future telecommunications policy options for the government in its relations with the privately owned and operated telecommunications industry in the USA.     

Traceability adoption at the farm level: An empirical analysis of the Portuguese pear industry

Traceability is becoming a condition to operate in European food markets. Retailers impose more stringent standards than what is mandatory. An example is EurepGAP, a quality standard for good agricultural practices that imposes traceability as a main obligation. This research investigates the choice of traceability at the farm level in the Portuguese pear industry. Results suggest that in this industry farm-level adoption of EurepGAP traceability is best explained by the choice to sell to the United Kingdom (UK). For farmers selling to the UK, the odds of choosing the EurepGAP traceability level are significantly linked to membership in particular producer organizations, farm productivity, producing products under a protected designation of origin (PDO), and farmer’s age. While retailers and farmer organizations seem to drive traceability, policy adjustments may be required to reduce adoption costs upstream and extend compliance among producers that sell directly to consumers and market independently.     

Global political economy of technology standardization: A case of the Korean mobile telecommunications market

This paper examines empirical cases of standardization in the Korean mobile market as vehicles for approaching the broader political and institutional context of standardization in telecommunications. A consideration of Korean standardization in the mobile telecommunications market is particularly interesting because it reveals how the state's political interests influence standards decisions, which are primarily driven by market and technological changes in telecommunications. Judged from the social construction of technology perspective which sheds light not only on technology itself but also on political, social and economic interests that surround transformations in technology, this paper highlights power relations among the major actors that have made technology standards decisions in Korea regarding second (2G) and third-generation (3G) mobile telephony. The paper also attempts to show how the Korean government has dealt with the diverse interests of various market actors while pursuing its own policy agenda.     

US telecommunications regulation: Will technology decide?

Twenty years ago, the telecommunications industry was an established regulated monopoly. But improvements in technology and reductions in costs have ripped apart the premises of natural monopoly and the economic rationale for public utility regulation. The authors review past US telecommunications policy and question the assumptions of the current search for a policy for the future. They believe that, for the industry to develop, institutions and restraints need to be removed.     

Impact of wireless telecommunications standards and regulation on the evolution of wireless technologies and services over Internet protocol

Beginning with the historical role and importance of multi-physical standards in wireless telecommunications for the future in the US, Japan and Europe, this paper provides a cohesive vision of how wireless communication, voice over Internet protocol (VoIP) is likely to develop. Also covered in this paper are its benefits, the technical and regulatory support required to realize this vision and an assessment of its potential impact on the structure of the telecommunications industry. Although the competitive structure of the Internet is relatively open, several factors, such as frequency allocation policy and radio interface standards, could block the efficient evolution of wireless services to an IP platform. The paper proposes two major technical requirements to enable effective competition in wireless VoIP and achieve greater technical productivity.     

Telecommunications in the land of the Thunder Dragon: recent developments in Bhutan

This paper charts the development of telecommunications in Bhutan. Since the introduction of telecommunications services in 1963 Bhutan has faced many challenges as it has sought to roll out a network that covers the whole population and country. A small population, a mountainous geography, a transitional economy and a unique approach to development—Gross National Happiness—present many challenges that need to be overcome if the telecommunications industry is to develop further. Added to this is the decision of Bhutan to join the outside world through membership of the ITU, APT and WTO that has added liberalisation and privatisation to the challenges faced by Bhutan. This paper identifies two broad policy options that Bhutan could adopt—network expansion nationally or investment concentration towards urban areas. The authors conclude that due to the limited resources available to Bhutan these policies are contradictory and will take the telecommunications industry in quite different directions if adopted.     

Standard setting in international telecommunications

A brief overview of the historical development of the telephone is given, emphasizing the importance of timely standards for technique, services and operation. The introduction of new technology and changing national policies in the provision of telecommunication services call even more for standardization at both the national and international level. Compatibility is a crucial factor in telecommunications and should be achieved by appropriate design and not by adaptation of installed equipment. Finally, the authors describe the newly developed CCITT policy to reconcile the necessity of continuity in standard telecommunication services and innovation due to the inherent potential of new technology.     

论技术标准化与产业标准战略

在经济全球化和信息技术发展的背景下，技术标准已经成为高技术产业市场竞争的战略工具。网络效应的存在加剧了技术标准的竞争，而企业联盟则是企业参与标准竞争的重要形式。由于技术标准化与知识产权制度的非对称安排，技术标准的专利化趋势在给跨国公司带来重大战略利益的同时，也对专利缺乏的发展中国家企业产生了不利影响。政府在技术标准化过程中的作用主要体现在，通过制定产业技术政策和竞争政策，提高本国产业和企业的技术标准竞争力。我国产业标准战略的核心问题是要建立起基于企业联盟的技术标准形成机制。     

Who's pulling the strings? The influence of network structure on standard dominance

Innovative systems and infrastructures require generally accepted common compatibility standards to enable components of such systems to interoperate. In some cases, various standards are developed by competing standards organizations, often resulting in standards battles. This paper focuses on factors that affect the outcome of these standards battles, and, specifically, on the effect of the structure of the industry-wide standards networks on standard dominance. The empirical context is the consumer electronics, telecommunications, and ICT arenas. We conduct a study of 103 standards organizations from 2000 to 2011. We find support for the hypothesis that standards that are supported by standards organizations that have a central position in the industry-wide standards network have a high chance of achieving dominance.     

Network control in global communications

The author examines the impact of technology on international communications in terms of the changing concept of the telecommunications ‘user’, the development of private networks, and the emergence of service bureaus. After defining and discussing the resulting policy problems, he briefly reviews the policy process and questions its adequacy in the new world of telecommunications.     

The rise of the Australian Telecommunications Industry Ombudsman

Australia is the first jurisdiction in the world to introduce a national private telecommunications industry ombudsman. Created in 1993, the Telecommunications Industry Ombudsman (TIO) has grown in jurisdiction and importance, becoming a regulatory cornerstone of the fully competitive post-1997 Australian telecommunications regime. This paper examines the role of the TIO as a mechanism for dispute resolution and as an industry regulator, suggesting that it provides an example of an innovatory regulatory process which transcends the divide between deregulation and proregulation. This raises the question as to the applicability of the ombudsman institution in terms of the regulation of telecommunications. Through highlighting the conciliatory nature of the ombudsman, the role of the TIO as a regulator is considered in its Australian context.     

Telemedicine in the USA: An overview

The authors examine the development and use of telecommunications technology in the provision of health services and in that context discuss policy formulation relating to technological innovation in health care. In the course of their examination, they consider the nature of the major challenges facing health care delivery that are amenable to responses in telecommunications technology, present selected findings from telemedicine studies in the light of these challenges, and offer a set of policy recommendations.     

Standards, trade and competition in the emerging global information infrastructure environment

Decentralized construction of the Global Information Infrastructure (GII) is substituting market-driven, ‘de facto’ standards and voluntary agreements on standards for technical compatibility, in place of the engineering decisions once made by public (and quasi-public) telecommunications network operators. Due to strategic economic behaviours on the part of private businesses and national governments, the goal of a fully interoperable GII remains elusive. The Internet does not offer an entirely credible alternative model, as the standards that have facilitated its explosive growth also are contributing to serious congestion problems, and the solutions proposed point to the Internet's re-integration into the public switched telecommunications network. Technical standards will shape the GII's implications for international trade and competition, and thus raise important, but inadequately recognized issues for regulation, competition and trade policy.     

Leveraging the EU regulatory framework to improve a layered policy model for US telecommunications markets

What is the best way to overhaul the current telecommunications legislative framework in the United States? This is an ongoing debate among telecom policy analysts and many others affected by the legacy of regulatory compromises that govern US telecommunications (and related information and media) industry sectors. This paper compares a Layered Model for US telecommunications policy with the regulatory framework adopted by the European Union. Both approaches focus on service characteristics rather than underlying technological traits.¹ It becomes clear that the Layered Model could be adopted to move away from sector-specific regulation, and could successfully use conventional market analysis criteria.     

The third-generation-mobile (3G) policy and deployment in China: Current status, challenges, and prospects

Since the inception of telecom reform in 1994, structural reform has been a main thread surrounding the course of the development of China's telecommunications industry. In structuring the 2008 reform and the 2009 3G rollout China's government adopted a relatively balanced approach in the hope of creating level-playing-field in 3G era. Nevertheless, due to the presence of substantial switching costs, substitution effects from the present technology mode, that is, 2.5G, the absence of killer applications, among other technological and institutional factors, China may not have a realistic 3G era before moving toward 4G and beyond. At the bare minimum, currently there is a lacking of either adequate technological-push or demand-pull for a full-scale 3G commercialization—there is no sign that this situation will change in the near term. Triggered by recent initiatives of market convergence between the telecommunications, Internet, and cable, a renewed circle of market, and regulatory reform is probably necessary to cast a sounder industry basis for a timing migration toward the next-generation-networks (NGNs). The timing migration toward 4G (and beyond) may provide a chance for a late-mover nation like China to leapfrog its western counterparts in leading the industry in the era of NGNs. To this end, China is confronted with a challenge in re-examining its industry policy as well as technological strategies for a sustainable development in the era of NGNs. This study offers heuristic analysis and insights on the above issues based on archival documents and interviews. While implications are suggested for China's circumstances, the Chinese experiences may also be considered by other countries and investors when it comes to 3G (and beyond) policies, regulations, deployments, and evolutions.     

Telecommunications/ transportation substitution and energy conservation: Part 1

The substitution of telecommunications for transportation is held to have major potential for increasing energy conservation within the USA, other developed nations, and even developing nations. This article is the first of a two-part re-examination of the substitution hypothesis based on research and experience of the past decade. This part examines the theoretical potential of telecommunications-transportation substitution for energy conservation, and reviews recent research both on public attitudes towards substitution of telecommunications for travel and on the operational experience with substitution experiments in organizations. Part 2, which appears in the June 1982 issue of Telecommunications Policy, examines the major factors which influence whether individuals and institutions will in fact choose telecommunications over travel, and then discusses government policy which could facilitate telecommunications substitution for travel.     

Intellectual property rights and standardization: the case of GSM

This paper investigates the role of intellectual property rights (IPRs) in the process of standardization in the telecommunications industry. We take the global system for mobile communications (GSM) case as a highly relevant example, being part of a high-tech industry in which standards play a large role. In the process of designing the GSM standard, a lot of attention has been given to IPRs, mainly to avoid a situation in which a single IPR holder could hamper or even totally block the development of the standard. Nevertheless, the ultimate GSM standard contains a large amount of so-called ‘essential IPRs’, i.e., IPRs without which the implementation of GSM products is impossible.The paper provides a general discussion of the development of GSM and presents a database on the essential IPRs in the GSM standard. This database has been compiled on the basis of international patent statistics, and the data that manufacturers have supplied to European Telecommunications Standards Institute, the European standardization body responsible for defining the GSM standard. We use this database to assess the dynamic IPR position of firms in the original GSM standard and its subsequent development.We use the GSM case to underline the importance of a general European policy with regard to IPRs and standardization, and derive several concrete recommendations for such a policy.     

Regulation and innovation in the telecommunications industry

This paper aims to introduce issues that relate regulation and innovation in the telecommunications industry. We try to address the following question: which types of regulatory schemes are likely to promote innovation in a fast-growing telecommunications industry? Section 2 analyses ex ante control by sector-specific regulation and ex post control by competition policies. Section 3 deals with the importance of compatibility hence regulation of standards in the telecommunications industry. Section 4 discusses the major issues pertaining to the relation between innovation and pricing on the one hand, and innovation and unbundling on the other.