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Language: en
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COMMISSION OF THE EUROPEAN COMMUNITIES

**Brussels, 15.07.1997**
**COM(97)351** **final**

###### **_The Information Society and Development:_** **_the Role of the European Union_** **_Communication from the Commission_** **_to the Council_** **_to the European Parliament_** **_to the Economic and Social Committee_** **_and to the Committee of the Regions_**

_**CONTENTS**_

INTRODUCTION

A. THE CHALLENGE OF INTEGRATING TÎÎE DEVELOPING

COUNTRIES _m_ THE INFORMATION SOCIETY

1. THE CONTRIBUTION OF INFORMATION AND 3
COMMUNICATIONS TECHNOLOGIES (ÏCT) TO DEVELOPMENT

2. THE CHALLENGES FACING THE DEVELOPING COUNTRIES 6

B. COMMUNITY ACTION AND PROSPECTS

3. THE EUROPEAN UNION'S CONTRIBUTION TO PROMOTING 3

THE INFORMATION SOCIETY IN THE DEVELOPING

COUNTRIES

4. GIVING A NEW IMPETUS TO COMMUNITY ACTION FOR THE 10

DEVELOPING COUNTRIES

14

CONCLUSION

ANNEX I

List of acronyms

_INTRODUCTION_

Recent trends towards the information society potentially concern most human activities,
including learning, communication, work and leisure. This applies equally to the
developing countries, notwithstanding the diversity of their market situations, policies or
technological capacities. This Communication presents & number of guidelines and
mechanisms to encourage the participation of developing countries in the information
society, not only as consumers but also in an active role.

The G7 Conference on the information society held in Brussels in February 1995
expressed concern about the need to avoid further widening the gap separating the
industrial countries from the developing countries and called for "a shared vision of human
enrichment:" _[ i]_ "Our action must contribute to the integration of all countries into a
global effort. Countries in transition and developing countries must be provided with the
chance to folly participate in this process as it will open opportunities for them to leapfrog
stages of technology development and to stimulate social and economic development".
The Conference on the information society and development organized in Midrand from
13 to 15 May 1996 at President Mandela's invitation, bringing together more than 50
countries and international organizations, focused on the specific needs of the developing
countries and highlighted the potential of the new technologies (see supplementary
Annex 6) It provided a forum for joint reflection reflection on the common rules required,
the areas of cooperation towards building the global information society, and the priorities
for development. Egypt has undertaken to organize the follow-up to this Conference.

The EU has embarked upon redefining and modernizing its relationship with each of the
main developing regions, providing an opportunity to take account of the information
society concept in relations with them. For Community action a reference framework has
to be established to secure the necessary coherence, promote possible synergies between
the various policies, and strive for coordination with the activities of the Member States
and of the international organizations concerned. A regional approach is recommended
for this purpose to ensure that the action takes place in the context of existing relations
and at the same time in that of the available cooperation instruments. For external
partners the message should be realistic and it should draw their attention to. what is at
stake in the current upheavals and to the efforts they have to make.

##### `A. THE CHALLENGE OF INTEGRATING THE DEVELOPING` `COUNTRIES IN THE GLOBAL INFORMATION SOCIETY`

1 THE CONTRIBUTION OF INFORMATION AND COMMUNICATIONS

TECHNOLOGIES (ICT) TO DEVELOPMENT

1.1. As emphasized at the Conferences of Midrand and Rome on the
Mediterranean, the information society (IS) mobilizes revolutionary and
pervasive technologies that profoundly alter the organization of work,
education and society at large. It entails a reduction of time and space

 - Meeting of the Ministers of the G7 countries and the Member States of the European Union, Brussels,
2&pBNi»ry 1996.

constraints and presents a panoply of new tools with unparalleled capacities
enabling the developing countries to make some great leaps forward in
technology by economizing on the intermediary stages which the
industrialized countries have gone through. The increasing complexity of
economic relations and the unprecedented' accumulation of knowledge and
experience are conducive to increasing global integration. However,
countries that shut themselves off from these changes, isolating themselves
from international trade networks and investment flows and from networks of
scientific and cultural creativity and their spread, would risk being
marginalized. In some countries there is the further risk of a two-speed
society emerging, with only part of the population having access to new
networks, services .and equipment and capable of using them with ease and
enjoying the advantages they offer.

1.2. In technological terms, the moves towards the information society mobilize a
panoply of new tools which are spreading throughout the developing
countries. There has _bQQn_ an explosive growth in _cellular mobile telephony,_
in particular where they offset the deficiencies of fixed networks. In the field
_of satellite_ communication, geostationary technology is in full development
(multispot access or access on demand), and low- and medium-altitude orbit
systems will soon be offering global services. These technologies are less
capital-intensive and better adapted to remote regions and sparsely populated
areas (solar-powered switches, VSAT). The capacity of _optical cables_ is _on_
the increase and connections are multiplying, e.g. those being established
between Chile and the other countries of the Pacific coast of South America,
and the FLAG project linking Europe and Asia via the Mediterranean.
_Internet_ and WWW technology provide a platform for integrating other
technologies, including ISDN lines and ATM servers. A very wide range of
projects is already based on these techniques and virtually all NGOs in the
field use them. _Teieports_ serve as "reception centres" for tele-working, in
particular for highly labour-intensive types of services such as statistics,
accounting, software production and airline reservation systems (Mauritius,
Jamaica, India, the Philippines).

Space technology offers unprecedented possibilities for development aid, in
particular in navigation and positioning and also in earth observation.
Specifically, earth observation satellites enable the collection of data essential
for resource management, land management and monitoring of the
environment. CD-ROMs contribute to education and facilitate the storage
and dissemination of data. CIM production technologies and
material-as-needed methods (Just in Time) lead to significant gains in
productivity.

1.3. Through information society applications new opportunities present
themselves for the developing countries with advantages comparable to those
accruing in the industrialized countries, e.g. more efficient management for
SMEs and access to economic information, training, interactive user/server
networks and international markets, and also enhanced efficiency for
governments and administrations.

Technologies for education and training, in particular distant education aid
.multimedia, _ma_ new modes of learning offered by the information society -cy
be instrumental in meeting these quantitative and structural needs of countries
that have to accommodate, train and economically integrate large numbers of
workers (in most cases half the population is under the age of 20) in widely
dispersed and under-equipped areas of habitation. Through continuing
education and training, moreover, there has to be a constant renewal of skills
throughout people's lives.

Some countries have to cope with large-scale endemics and epidemics.
Teïemedicmc may help to meet these challenges by improving the
organization and management of health care. Data bases may be linked
through telematic networks to monitor the development of diseases
(epidemiology), provide access to medical expertise through teleconsult&tion
and pave the way for remote medical assistance. ICT also play an important
role in preparing and implementing health policies.

In industry and international trade, ICT play a decisive role in improving
competitiveness by raising production quality (more stringent standards,
quality control) and its fashion-related aspects (textiles) or by kitegrating
production in a complex process such as in the case of spare car components,
or by offering facilities for the transmission of orders and specifications as the
first steps towards electronic commerce. In some countries software
applications and computerized data input have created a large number of jobs
(100 000 software engineers in India) and new markets are emerging for word
processing in the press, newsmedia and audiovisual sectors.

In the domain of research in agriculture, chemistry, water management,
fisheries, the environment, urban planning, etc. the development of networks
enables researchers in the developing countries to have the necessary
information at their disposal and to set up teams of critical size and thus to
integrate in the global scientific community and thus stem the brain drain.

The emergence in many developing countries of a new independent press
and the explosive growth of the Internet, the freeing of the airwaves _esiù_ the
shift from state to public service broadcasting are creating an increasing
demand for up-to-date information, both written and audiovisual. Sixh
pluralist information contributes to strengthening Chilian society and
consolidating the democratization process in numerous developing countries.

Linguistic diversity, including certain Community languages as well as native
languages of the developing countries, constitutes a cultural richness that
forms part of man's heritage. Thanks to ICT, it can be conducive to the
development of an industry with multicultural and multimedia contents based
in particular on electronic publications.

1.4. ICT are not the sole instrument to give an impetus to structural development.
They can only be used with optimum efficiency if the societies where they are
applied manage to master them properly. Experience in development aid
shows that the use of new technologies must be largely adapted according to

-5»

national and local contexts, geographic conditions, the economic structure of
the country concerned or to its fundamental needs. However, ICT have a
great potential which may serve the goals of the development strategies and
competitiveness of the developing countries. This potential has certainly not
yet been fully exploited. The aim of this communication is to propose an
overall strategy in this domain.

```
  THE CHALLENGES FACING TEE DEVELOPING COUNTRIES

```

The benefits of the information society for the develomng countries depend hovvsver
on the level of their communication and information infrastructure and the
development capacity offered _by_ their economic and regulatory systems.

2.1. The level of îelesomnurnteflîion mfr-asîryeîures in the developing countries
is highly diverse but mostly far removed from that in the industrialized
countries. Using tslsdensity [2] as an indicator, the tigure for the industrialized
countries is over 43, that for middle-income countries around !0 while the
least advanced countries are about 1.5 and the world average is 11.5. This
quantitative difference is further aggravated _by_ qualitative weaknesses of
networks affecting the quality and reliability of communication and by
structural disparities between urb?.n and rural areas. Teledensity in rural
areas, for instance, does not exceed 0.8 in low-income countries. The
infrastructures fail to meet local demand and cannot guarantee access to
global communication networks. Moreover, default on payment by public
administrations in certain cases, failure to allocate charges for international
communications (deductions from the general state budget) and the existence
of cost structures that surcharge international communication and subsidize
local communication deprive telecommunication operators of the resources
for their activities. Thus public management hampers the optimum use of
existing facilities. [:; ]

However, there are enough factors for growth. First of all, there is a
significant sustainable demand, witness the long waiting lists and connection
periods of up to ten years, the existence of veritable "black markets" in
telephone lines in some areas, and high levels of average revenue per line.
This explains why in many countries there has been a sustained growth in
telecommunications, e.g. more than 17% a year for all countries with an
income level below US $700 from 1984 to 1994. The drop in the cost of
technologies and competition from new global operators using call-back
procedures and the like have led to a decrease in traditional revenue from
international communication that is causing concern to the developing
countries, raising their awareness of current changes.

2 number of mam lines per 100 inhabitants.

3 African Green Paper - Telecommunication Policies for Africa, Document _2~t\_ _2_ April 1996,
Telecommunications Development Office, ITU.

**2.2.** **For** **tlie** **oilier** **informationinfrastructure.^** **the PC ratio per 100 inhabitants**
**gives an** **indication** **of the** **informatics** **gap,** **ranging** **from** **IE** **for** **high-income**
**countries,** **to 2.3 for medium-income and** **0.01** **for low-income countries. In**
**terms of the** **market** **share** **in** **information technology, the** **United** **States**
**account for 34.7%, Europe for** **29.3%,** **Japan** **for** **14.6%** **and the rest of the**
**world only 21,4%. These** **differences** **are** **also** **reflected in the figures for** **data**
**transmission,** **the spread** **of** **Internet** **servers** **and the number of** **users.** **Rere.**
**again, there are enough** **factors** **for potential** **growth,** **including the drop in**
**prices,** **the development of multimedia applications** **and** **access to the** **Internet.**
**The PC** **market** **is dynamic** **and** **could follow in the footsteps of** **television**
**which is now** **wide-spread in** **low-income countries, with 46% of homes**
**having** **a TV** **set.**

**2.3** **According to the World Bank, the annual investment necessary for** **the**
**growth of** **telecommunications** **in the developing countries** **over** **the next** **five**
**years amounts to US $60 billion. Financing in the** **form** **of international**
**public aid would not** **exceed** **2.3 billion and most countries cannot make up**
**the difference. The necessary investment can only come from the private**
**sector. However, to mobilize private investors a legislative and regulatory**
**framework** **will** **have to be established that is stable, predictable and**
**transparent, making it possible to take rational economic decisions.**

**The commitments on market** **access** **and national** **treatment** **and on the**
**regulatory principles adopted by 69** **countries,** **including many developing**
**countries, in the framework of the** **WTO/GATS negotiations** **on the**
**opening-up of** **telecommunication** **services which were completed on**
**15** **February** **1997 provide** **a general** **framework** **that can meet the** **needs** **of the**
**developing countries. Provision is made for independence of the regulator,**
**basic** **competition** **rules, interconnection of** **networks,** **universe!** **service**
**obligations, transparency in the grant of licences, and allocation of**
**frequencies.** **In** **order to** **make** **more rapid progress on the** **road** **to the**
**Information Society, the developing countries ought to examine what would**
**be the best approach to develop their national telecommunication systems in**
**accordance with the GATS** **principles.**

**The** **developing countries will thus be able to meet the commitments made to**
**the WTO on telecommunication services and, in the case of** **countries** **that**
**have not made such commitments, to meet these, including those relating to**
**regulatory principles.**

**2.4** **Human** **resources are decisive by coping with change.** **This includes**
**technical staff in telecommunication and computing and, in particular, those**
**in the software sector, offering prospects for new jobs. This also** **concerns**
**training for people working in information such as teachers and journalists,**
**those responsible for regulation, management (marketing, financial and**
**commercial services, and quality control) and** **new** **professional intermediaries**
**specialized in ICT access and** **use;** **Measures should also be taken to ensure**
**life-long learning.**

2.5 A dialogue on **the** aspects of the information society connected with
development is carried on within certain international organizations, e.g. the
ITU, UNESCO, UNCTAD, UNDP, with the **SDNP** programme, the World
Bank, with its InfoDev initiative, and the OECD.

**B.** **COMMUNITY ACTION**

3. **THE EUROPEAN UNION'S CONTRIBUTION TO PROMOTING TEE**

**INFORMATION SOCIETY** **IN** **THE DEVELOPING COUNTRIES**

European Union action on cooperation in telecommunications and information
technologies has progressively increased over the years. Experience shows that it
meets a growing need more explicitly expressed by our partners and that it produces
concrete and significant results. [4] The new cooperation agreements signed with
developing non-member countries include formal provisions on the information
society and associated technologies.

3.1. **Economic,** **financial and technical cooperation** has led to significant
activities in the various partner regions of the Union. [5 ]

In the Mediterranean region several projects have been implemented,
including assistance in consulting Community data bases. On Malta the
European Commission has co-financed the upgrading of the
telecommunications network. An ECU 10 million programme was recently
approved for the modernization of the Syrian telecommunications operator.

In Africa the accent has been on rural telecommunications and communication
by satellite. Two projects for rural telecommunications services have been
implemented in Mozambique (MECU 13) under EDF VI and in Tanzania
(MECU 25) under EDF VII. A major satellite communication project for the
safety of civil aviation has been launched in West and Central Africa
(MECU 38) under EDF VI and VII. In the Pacific, a number of projects have
improved communication between the islands.

In Central America assistance for the modernization of telecommunications is
being set up with the COMTELCA regional organization involving financial
support totalling ECU 18 million. Other projects have been implemented,
including a study of human resources in Venezuela and telematic applications
in Mexico, and AHCIET is running a programme of seminars.

See SEC(94)428 on Telecommunications and Development, the Role of the European Union"
(Working document of the Commission's departments)

See the annex listing the total sums allocated by the Community (Commission + EIB) to
telecommunication projects in the developing countries, with a breakdown by geographic areas
(Mediterranean, Africa, Latin America and Asia; the countries of Central and Eastern Europe are
not included in these data, although they benefit from extensive cooperation with the Union).

-8

**Foc** **Asia,** **actions connected with the** information society have been included
**in other** **operations.** **The ECIP mechanisms** **for** **promoting,** partnerships,
**supplementing** **the** **ALINVEST,** **ASIA-INVEST and** MEDINVEST regiomi
**programmes,** **have made it possible** to support **more** than 20 joint venture
**projects** **in** **the** **information** **sector and introducing ICT in industry.**

**3.2.** **From 1990 there has been international scientific cooperation** with the
**developing countries** under **the** accompanying actions (APAf) of t!ic.
Framework Programme and projects totalling MECU 27 were launched
**between** **1990** **and 1994, including** **activities** in China and India. Since 1995
**this cooperation has formed part of** **the** **fourth R&D** framework programme.
**Action 2,** International Cooperation, with 25 projects totalling MECU 9.
**covering subjects** ranging from microelectronics, telernatic applications
**(telemedicine** **in** Letin America, distant teaching in Africa and Latin America,
management of natural resources and linguistic engineering in the Arsb
countries), management of natural resources (in particular for tropica!'
forests) and industrial applications (textile industries in the Maghreb and
machine tools in Latin America). However, the rapidly developing countries
have expressed regret that the financial resources dedicated to ICT wea?
remain limited, although to them these are priority areas. Consideration is
being given to whether European research networks should be linked up with
the corresponding networks in the developing countries.

3.3 The **European Investment Bank** has made part of the resources earmarked
for non-member countries available for initiatives under the Lome Convention
and agreements with the Mediterranean countries. Since 1980 over
ECU 350 million have been lent in the countries of the Mediterranean and the

ACP and since 1993 in the countries of Latin America and Asia that have
signed cooperation agreements with the Community. The Bank has lent its
support to these projects, set up at the request of the beneficiary countries
and designed to extend or modernize telecommunications networks. Several
loans and support in the form of risk capital have been provided to African
countries to finance networks, in particular in rural areas, including in
Erythrea, Burkina Faso and Namibia. In Morocco the EIB granted an
MECU 80 loan for the extension of international cable links to connect
Tetouan to Spain and Casablanca to Portugal and France. In Erythrea
MECU 8 has been lent to strengthen the local network and international
links, supplementing a regional project which also involves Djibouti. An
MECU 75 investment was made in Chile in 1994 to connect 400 000 new
subscribers to the digital network over the next two years, involving a 23%
growth of initial teledensity (12 lines per 100 inhabitants).

3.4. **The Member States also have bilateral ICT programmes. For instance, the**
**Commonwealth Secretariat** in **London promotes the** organization of seminars
on **the regulation** of telecommunications and also technical training courses.
The Governet project is designed to illustrate the challenges involved in the
implementation of Internet in Africa, presenting proposals to meet these
challenges by linking up management experts in Africa through networks with
the collaboration of the Association of Management Training Institutes in

Eastern and Southern Africa (AMTIESA). The Spanish scientific and
technical cooperation programme with the countries of Latin America
(CYTED) has implemented several ICT projects. Initiatives taken in France
include the RJO project (Réseau Intertropical d'Ordinateurs or intertropical
computer network) of the French office of overseas scientific and technical
research (ORSTOM) which at the end of the 1980s linked the research centres
and laboratories of the countries of Southern Africa to global research
networks. There are plans for extending the French REFER network to the
developing countries with the assistance of AUPELF/UREF which are
developing a scientific information system (SYFED) in the French-speaking
countries. The INRIA (national institute for informatics and automatics
research) continues its cooperation with numerous partners in the developing
countries. The Italian Government, in conjunction with UNESCO and the
Republic of Korea, has financed the RINAF project (Regional Informatics
Network for Africa) for the creation of several access points to information
networks in Africa in collaboration with other similar initiatives in the region,
e.g. the RIO of ORSTOM.

**GIVING A NEW IMPETUS TO COMMUNITY ACTION FOR THE**

**DEVELOPING** COUNTRIES

4.1. The outline sketched above shows that there has been increasing awareness in
the Community and in the recipient countries of the strategic character of the
**integration** **of the developing countries in the information society.**
However, this calls for a strategy in which account is taken of this dimension
when evaluating cooperation projects and programmes so as to ensure the
coherence of all the instruments of cooperation for optimum effectiveness.
To implement these guidelines there is no need to provide additional loans.
Rather, the information society dimension should, with the agreement of the
partner countries, be systematically incorporated in the existing programmes,
rechannelling the funds made available, where appropriate, in particular
where this dimension may be advantageous. Promoting the establishment of
an economic and regulatory framework remains a first priority target,
mobilizing iocal and international capital to ensure access for the developing
countries to ICT for their benefit. The second target is to put technology at
the service of development.

Creating the conditions favourable to such integration requires the following:

    - establishing the **prerequisites to the development** of the information
society: regulatory framework conducive to investment, commitments
under the WTO on the basic regulatory principles for telecommunication,
standards;

     - **facilitating the access of the developing countries** to the information
society through measures relating to human resources, technology transfer
in particular in production and trade activities, demonstration of
applications; this also includes their participation in Community R&D
activities.

**-10**

    - supporting measures to foster partnerships between private operators of
the Union and the developing countries;

   - contributing to better Intégration between the information and
communication systems sf the developing countries of the same region
so as to encourage interconnection of their systems and the development
of new services, following the Community model;

    - fostering dialogue and coordination with international initiatives of

the Member States and those of the international organizations concerned.

in these activities account will be taken of the priorities of the Partners.
Often, they will not modify the objectives of cooperation but, rather, strive to
serve them more efficiently in the light of each country's Specific economic
situation. Nor is it the intention that the Union should substitute itself for the
developing countries. Rather the Union intends to provide them with the
means to participate in working out the global frameworks for the information
society and developing internal models for its use.

4.2. It is proposed that cooperation should follow eight courses oï action
comprising the following:

    - Raising awareness and fostering dialogue, including social and societal
aspects. This can be achieved by including the information society
dimension in the institutional dialogue between the European Union and
most of the developing countries. Where possible this activity should be
pursued in coordination with the awareness-raising initiatives of
international organizations such as the World Bank (InfoDev), UNESCO
and the ITU (in particular the World Conference on Development and
Telecommunications to be held in Malta in 1998, and regional
conferences) and, where appropriate, by supporting the initiatives that
could be taken in the follow-up to the Conference of Midrand. In this
context, it is important to encourage the establishment of concertation
bodies between suppliers, operators _<md_ users (governments of developing
countries, local decision makers, companies) to examine how the new
technologies could improve national and local development strategies.

    - Supporting the establishment cf a regulatory framework suited to the
development of infrastructures for which the EU has wide-ranging
experience in gradual liberalization, which may serve as a model,
obviously with national nuances. This includes technical assistance in
implementing the commitments made to the WTO by developing
countries, and support for countries contemplating such commitments.

    - The use of the financial instruments administered by the Commission
and the EIB, taking account of the other funding organisations (World
Bank but also the BID, ADB, etc.) and by making financial cooperation
subject to a number of conditions conducive to structural adjustment and
progressive adaptation of the operators. Financial assistance should be
clearly targeted and linked to consecutive stages of change. Thus, support

**- M** **-**

will be given by priority to credible and qualified operators offering
prospects of efficiency and sustainabiîity. A particular focus could be
aimed at projects for rural areas or projects of regional significance.

     - Action oriented towards the regional adoption of identical **standards**
ensuring interconnectability of networks and interoperability of services
and enabling users to benefit from falling prices resulting from economies
of scale. At the same time, an impetus should be given to the adoption of
strict quality requirements for systems and components. The EU has
evolved a dynamic standardization policy which has led to such standards
as GSM, ISDN, DECT and ERMES. The developing countries could be
more closely interested in standardization and thus benefit from
Community experience. Such cooperation should take place in the
framework of European bodies such as the ETSI and CEN/CENELEC.

       - **Pilot projects which** make it possible to demonstrate the specific benefits
of applications, test their technical feasibility and evaluate their economic
implications and cultural acceptance. They enable users to move forward
in successive stages in adapting the specific applications and learning how
to use them. It is therefore recommended that projects be incorporated in
the existing programmes that are targeted at areas regarded as requiring
priority under regional action plans. This should be achieved in close
coordination with the projects launched at global level in the G7
framework following the conference of Brussels. The Global Inventory
Project could serve as a basis for data exchange in this field.

       - **Taking account** **of** **ICT** **in** **industry,** in particular in sectors where there
is cooperation with the EU. [6 ]

     - Support for defining a strategy for the development of the information
society, requiring provision of the **necessary human resources,** in
particular through the transfer of experience in matters of training,
multilingual access to knowledge and the utilization of new technologies in
this domain. Particular emphasis should be placed on targeted training,
especially at a regional level, for regulators, decision makers, distributors
and managers, high-level technicians and media staff, both audiovisual and
printed. Priority ought to be given to local training facilities, in particular
for technical staff, and to improving these where they are insufficient.

**•** [Inclusion] [ by the EU of] [ the information society among] [ the] [ principal areas ]
for action in the 5th Framework Programme in research and
development. [7] In some cases developing countries will be able to take

6 Document of the Commissions departments on industrial cooperation in the Mediterranean region
and in Asia.

7 COM(97)47 final, Communication of the European Commission: Towards the 5th Framework
Programme, the scientific and technological objectives.

12

part in Community programmes in this field on a prqject-by-project basis.
This has to be implemented under the provisions on intemationd
cooperation in the framework of the Fifth Framework Programme.
Specifically, the interconnection of European research networks and
those of the developing countries should be systematically promoted, in
particular to break the isolation of researchers in developing countries and
give them access to specific documentation.

4.3. In order to take account of the specific economic, political and cultural
characteristics of the developing countries and their requirements, the action
contemplated should be modulated according to the particular features
peculiar to each major region and the nature of the dialogue the Community
carries on with each one of these. Specifically, a regional action plan
should be drawn up and implemented in each case.

         - For the Mediterranean region, Community cooperation takes
place within the framework of the Barcelona Declaration for a
Euro-Mediterranean partnership (November 1995). The Barcelona
action plan takes the information society into account. The Rome
Conference on the construction of the Euro-Mediterranean
information society (30-31 May 1996) emphasized the importance
of a communication capacity that is commensurate with trade
flows. An action plan drawn up in the MED A framework covers
actions of regional interest and proposes synergy between the
various instruments for structural adjustment, in particular by
providing support for adaptation to the regulations, a dialogue
through a Forum on the Information Society, accompanying
support for the restructuring of télécommunications, training,
and six domains for pilot projects: health care, electronic
commerce, tourism/heritage, IT in industry and innovation,
space technology applications, research and education
networks. Additional projects are being submitted by recipient
states on a bilateral basis.

         - The Lomé Convention makes provision for a framework to foster
cooperation on communications and information with the 70
partner states in Africa, the Caribbean and the Pacific, Priority
applications in social and economic services have to be evolved
in accordance with the needs specified. A reference in the Green
Paper on EU/ACP relations [8] opens the way for a new approach in
this direction. At political level the governments of the ACP
countries should be encouraged to take due account of the
problems of networks and ICT while supporting their own users
and, if necessary, setting up new bodies to underpin these

8 Green Paper on relations between the European Union and the ACP counuies on the eve of the
21st century, COM(96)570.

13

developments. A special approach is called for the least advanced
countries.

The countries of Latin America are linked to the European
Community by bilateral agreements, sub-regional agreements
concerning the countries of the Cartagena Agreement (Andean
Pact), the countries of the central-american isthmus and a new
agreement with MERCOSUR. There is also a regional dialogue
with Central America (San Jose) and all the countries covered by
the Rio Group. Provision is made for references to IS or ICT
cooperation. Most of the countries concerned have already
restructured their telecommunications and developed
infrastructures with the active participation of European industry
and operators or have set out to do so. Cooperation, based on the
principle of mutual benefit, should encompass standards, industrial
aspects, research and priority applications. As a first step it has
been proposed that a conference be organized on cooperation
between the European Union and Latin America on matters
concerning the information society.

The countries of Asia have emerged as consumers and dynamic
producers of computer and communications equipment. With
approximately half of the world's population, they appear very
attractive in the eyes of European operators who are eager for
closer cooperation, as was illustrated by a recent study on
prospects for cooperation between the EU and Southern and South
East Asia. [9] On the basis of the findings of this study, an initial
cooperation framework with these countries is currently being
studied. It mainly covers priority areas of ICT application and the
creation in Asia of a "technology window" to facilitate cooperation
between companies in Europe and Asia and enable assistance on
aspects like deregulation and standards. For the ASEAN countries,
a programme was launched at the ASEM Summit held in Bangkok
in April 1996. The ICT occupy an important position in the
Partnership with ASEAN meeting planned for November 1997 in
Singapore. The projects using satellite observation have
contributed to the development of local know-how. Today the
strong demand emanating from this region calls for a specific
programme which would as its first objective foster partnerships
between companies. In relations with India and China, targeted
industrial cooperation should be pursued while for the poorest
countries, such as Vietnam and Mongolia, action should by priority
focus on basic information and communication services and
preparations for their access to the IS.

**9** EU-Asia IT&C Economic Cooperation, Final Overall Report, August 1996, EC/ECO Mission
No 569/96 (ref. EC CC/B/ECO/2/B7-3001/95/155).

14

CONCLUSIONS

The actions undertaken to date to raise awareness and provide Information have
highlighted the importance of integrating the developing countries in the
information society. Following the Midrand Conference, three objectives havebeen attained:

        - the start of a dialogue between developed and developing ccuutricf :

        - the start of £ process that should lead to _t_ vision of the glob si irifunnEvicii
society sliced between the social sectors concerned' by development;

        - the drawing up of common principles arid cooperative action to strengthen
our common vision and meet the challenges cf the information society.

This dialogue has revealed the extent to which the gap between the industrialized
countries and the less advanced countries could widen as a result cf the current
changes; this situation calls for specific action. Bearing this in mind, the European
Commission, which has gained significant experience in co-operation in the
technologies in question, proposes to take up a position that is strongly conducive
to the development of the information society in the developing countries and to
include this dimension in its general cooperation policy with _the_ developing
countries.

The actions proposed involve the existing cooperation mechanism? which will,
where appropriate, be applied to the dialogue, awareness campaigns, the definition
of appropriate policies, the development and interconnection of information
infrastructures, the provision of training, the distribution of applications and the
development of their contents. These activities will be managed under regional
action plans which will ensure the coherence of Community action and synergy
with action by the Member States } and provide a basis for concertation with
international organizations.

This approach provides the framework within which the EU and its Member
States can play an active role as a bridge between the industrialized countries and
the developing countries, contribute to translating into practice the participation of
the developing countries in the emerging information society and shape _it_ in such a
way that each one of them can participate in it.

**15**

**ACP:**

**ADB**

**ABCIET:**

**ALINVEST:**

**AMTŒSA:**

**ASEAN:**

**ASEM:**

**ASINVEST:**

**ATM:**

**AUPELF/UREF:**

**BIB:**

**BID:**

**CEN/CENELEC:**

**CEPT:**

**€IM**

**COMTELCA:**

**CYTED:**

**DECT:**

**ECIP:**

**ETSI**

**List of** **abbreviations**

**African, Caribbean and Pacific states, signatories to the** **Lomé**
**Convention**

**African Development Bank**

**Asociacion** **Hispanoamericana de Centras de Investigacion y**
**empresas de** **Telecomunicaciones**

**Investment Program for Latin America**

**Association of Management Traimng Institutions of Eastern and**
**Southern** **Africa**

**Association of South East Asian Nations**

**Asian-European Meeting**

**Investment Program for Asia**

**Asynchronous Transfer Mode**

**Association des Universités Partiellement ou Entièrement de**
**Langue Française - Université des Réseaux** **d'Expression**
**Française [association of partly or fully French-speaking**
**universities - university of French-speaking networks]**

**European Investment Bank**

**Banco** **Interamericano** **de Desarollo**

**European Committee for Standardization - European Committee**
**for** **Electrotechnical** **Standardization**

**European Conference of Postal and Telecommunications**
**Administrations**

**Computer Integrated Manufacturing**

**Technical Commission on Telecommunications for Central**

**America**

**Ciencia y Tecnologia para** **El** **Desarrollo**

**Digital European Cordless Telecommunications (European**
**standard for digital cordless telecommunications)**

**European Community Investment Partnership**

**European Telecommunications Standards Institute**

**16**

EU:

FLAG:

GATS:

GSM:

G7:

ICT

INRIA:

InfoDev:

IS

ISDN:

ITU

MEDINVEST:

MERCOSUR

NGO:

OECD:

ORSTOM

PC:

REFER:

RIO

SDNP/UNCTAD:

UNCTAD:

UNDP:

UNESCO:

VSAT:

WWW:

European Union

Fiber-optic Link Around the Gfobe

General Agreement on Trade in Services

Global System for Mobile communications; (the digitel pan

European mobile telephone system)

Group of 7 (the 7 most industrialized countries)

Information and communication technologies
Institut National de Recherche en Informatique et Automatique
(France)

Information for Development (World Bank)

Information Society

Integrated Services Digital Network

International Telecommunication Union

Investment Program for the Mediterranean Area

Mercado Comun del Cone Sur

Non-governmental organization

Organisation for Economic Co-operation and Development

Organisation de la Recherche Scientifique et Technique d'OutreMer

Personal Computer

Réseau Français de la Recherche

Réseau Intertropical d'Ordinateurs

Sustainable Development Network Program (United Nations)

United Nations Conference on Trade and Development

United Nations Development Program

United Nations Education Science Culture Organisation

Very-Small-Aperture Terminal (for satellite communications)

World Wide Web

**17**

THE INFORMATION SOCIETY AND DEVELOPMENT:

THE ROLE OF THE EUROPEAN UNION

COMMUNICATION FROM THE COMMISSION

TO THE COUNCIL

TO THE EUROPEAN PARLIAMENT

TO THE ECONOMIC AND SOCIAL COMMITTEE

AND TO THE COMMITTEE OF THE REGIONS

**Reference annexes, complementary to the main document:**

**(1)** **Statistics on Information and Communication Infrastructures in the Developing**
**Countries**

**(2)** **European Commission Projects for the development of** **the** **Information Society in**
**the Developing Countries**

**(3)** **European Investment Bank loans in the sector of telecommunications**

**(4)** **Information Society and Development Conference, Midrand 13-15 May 1996,**
**Chair's Conclusion**

**(5)** **Euromediterranean** **Conference on information society,** **R.ome** **30-31** **May 1996,**
**Conclusion of** **the** **Presidency**

**(6)** **Reference paper on regulatory principles negociated in the framework of the**
**General Agreement on Trade in Services (GATS)**

**- 4 . S -**

**Annex** **I: Statistics on Information and Commnnication** **Infrastructures** **in the Developing Countries**

**(Source: ITU, World Telecommunication Development** **Report,** **1995)**

**TELEPHONE: main lines and International traffic table**

CAGR [1] (%)
84-94

**18.1**

**7.9**

**8.3**

**3.4**

**5.0**

CAGR (%)
_per_ _100_ _inh._

_84-94_

15.9

6.2

6.4

2.5

3.3

CAGR(%)

outgoing
telephone traffic

29.1

21

15

14.2

Outgoing Tel.
Traf. _minute/Inh._

0.6

4.2

8.5

46

9.1

Main lines _per_
_100_ _inliab._

**1.44**

**9.64**

**14.12**

**50.80**

**11.39**

Outgoing
telephone traffic

_A4,_ _minutes_

1 880

3 558

4 032

38 402

47 872 j _15_

Main lines

_{Thousand)_

**47204.5**

**92590**

**70083**

**424140.7**

**634** **019.2**

*****

Low Income^

Lower Middle Inc.**

Upper Middle Inc. [4 ]

Higher Inc. [5 ]

World

**1** **Compound annual growth rate. It is computed by the following formula: [(Pv/po)I/n]-I, where** **Pv=** **Present value, Po= Beginning Value,** **n=mimbcr** **of** **periods.** **Tlie** **result** **is**

**multiplied** **by** **100** **to** **obtain** **a** **percentage.**
**2** **GNP per** **Capita of US$ 675 or less.**
**3** **Between** **US$676-2** **695**
**4** **Between** **US$2 696-8** **355**

**5**
**US$ 8 356** **or** **more.**

**INTERNET, PCs and** **TELEVISION**

INTERNET

PC

Estimated
Pcs(1994) [7 ]

0.09

1.00

2.28

17.95

Total television

receivers 1994

370 855

174 967

115 792

499 684

TELEVISION

Hosts

1 405

39S5I

77 886

I 586 125

DATA

TRANSMIS

SION

PacketSwitch [6 ]

4.14

35.20

60.6!

821.67

TVRec.

per 100

Inhab.

11.4

18.3

23.9

59.9

Total

estimated

users

7 728

219 181

428 373

723 688

Per/100, of TV

Household

1994 (%)

46.4

76.1

81.7

90.8

Total TV

Household

1994

269 262

103 084

84 034

277 862

Networks

52

815

921

23 509

**r**

**r©**
**0**

Low

Income

Lower

Middle Inc.

Upper

Middle Inc.

Higher

Income

6 Thousands of subscribers.

7 Per 100 inhabitants.

**Annex 2:** **Projects financed by the** **European** **Community** **for** **the** **development of the Information**

**Society in** **the** **Developing Countries**

**1.** **R&D Framework Programme Projects**

**Projects launched between 1990-1994 within the** **III** **Framework Programme (APAS) committed a**
**total amount of 27.3 Mio ECU to Asian, Latin American and Mediterranean countries. The main**
**projects of particular interest for developing countries for the support of S&T Research are the**
**following:**

**-** **Data Transmission System Concept for Decision Support System: a project based on the**
**application of information and communications technologies that aims at developing an Integrated**
**Flood Risk Management System for Shanghai. Partners of the project were the S&T Commission**
**of Shanghai Municipality and the Shanghai Bureau of Water Conservancy. (3.532.000 ECUs)**

**-** **Computer Integrated Manufacturing: a program consisting of** **4** **projects in the field of Engineering**
**Research and design, in cooperation with Tsinghua and Beijing Universities, and the East China**
**Institute of Technology).** **(1.179.000** **ECUs)**
**-** **Communication** **Mobile GSM: a R&DT project in the field of the new generation of mobile**
**telephony technologies in China. (5.938.000 ECUs)**

**-** **DAB-DVB: Digital Audio Broadcasting and Digital Video Broadcasting for the definition of**
**common standards in China (2.000.000 ECUs)**

**-** **Research on the interfaces of Arab and Community languages for databases or videotex in the**
**Mediterranean.** **(130.000** **ECUs)**

**-** **Training plan: For Latin America** **w ith** **AHCIET (540.000 ECUs).**

**-** **REDALC: Research networks in Latin America (140.000** **ECUs).**

**Two mini-programmes targeting** **Information** **Technology issues of specific importance for developing**
**countries were launched by** **DGIII.**

**-**
**Keep-In-Touch** **Programme: 26 projects at a cost of 1.7 Mecu, to build IT cooperation based on**
**researchers returning to their home countries from the European Union - a strategy to stabilise**
**the local expertise in IT which is essential for development.**
**-** **ITDC** **Programme: 2S projects at a cost of 4.0 Mecu. to** **help** **build capacity in High Performance**
**Computing,** **a domain of general importance for** **industry,** **for infrastructure and for natural**
**resource planning as well as satellite data exploitation.**

**In the 1995 Call for Proposals, within the IV Framework Program** **(INCO-DC).** **the Commission,**
**DGIII launched 12 projects and** **DGXIII** **launched 7 projects:**

**-** **ARAMED: Extension and integration of Arabic** **lingware** **component in a unification** **based** **MT**
**System for the field of medical terminology and classification (130.000 ECUs).**
**-** **GAIA:** **A Multimedia tool for natural resources management and environmental education**
**(700.000 ECUs).** **••:**
**-** **TELESUN:** **A World Wide Multimedia Teleteaching System for Universities (600.000 ECUs).**

**-** **AREF: Arabic English French Software Localisation** **Tool** **(350.000 ECUs).**
**-** **D A** **WRON:** **Design of advanced wavelength-routed optical networks (597.000 ECUs).**
**-** **ELCANO:** **European and Latin American countries associated for a networked database of**
**outstanding guidelines in unusual clinical cases (465.000 ECUs).**

**-** **African Telecom: African Telecommunication Research** **(211.000** **ECUs).**

**-**
**Micropowcr** **sources: Micro-battery technologies - (500.000 ECUs).**

**-** **Porous Tech Sensors: Integrated porous silicon based sensor technology - (320.000 ECUs).**
**-** **ITUBR:** **Implantable telemetry for physiological data acquisition -( 350.000 ECUs).**
**-** **PARALIN:** **High Performance Computing applied to energy efficiency in mining and electrical**
**power industry - (630.000 ECUs).**

**-** **Peace by HPC: High Performance Computing and networking for joint research in medicine and**
**hi-tech design -(350.000 ECUs).**
**-** **HIPSÏA:** **High Performance Computing applied to manufacturing technology - (220.000 ECUs).**

**-** **HPC Finance: High Performance Computing applied to financial and economic planning (500.000**
**ECUs).**

**-** **QC1ME: Quality control management software tools (299.000 ECUs).**

- Iberstandard: Maintainable database for industrial standards in Information Systems development
(135.000 ECUs).

- SCM+: Extended agri-enterprise - ( 100.000 ECUs).

- DASEC: EDI for Chinese public administration and government - (300.000 ECUs).

- IBERCHIP: CAD and ASIC design and fabrication network - (300.000 ECUs).

An additional initiative financed by DG XIII was a Workshop on: Information Society in the EuroMediterranean context (104.000 ECUs).

For the second call for proposals (1996) under INCO-DC. the following list of projects to be financed
by the Commission has been established: 21 to be financed by DGIII and 9 to be financed by DGXIII.

 - _Information_ _Society_

 ARGON'AUTA, for the development of a network application in the sector of health care and
continuous medical education in remote regions of Argentina and Chile. (1.000.000 ECUs)

 - MUBOSIC, will allow to develop new a communication tool to use of Digital Audio Broadcasting
(DAB) multimedia services to fixed and mobile DAB users in China with a great advantage for
rural areas. (849.000 ECUs)
 - HARMON, will carry out fundamental research in the field of psycho-pedagogy applied to social
insertion for the disabled and those socially excluded people. (580.000 ECUs)

 - TEBALA, for the promotion of tele-working initiatives and to develop a network and links
between Latin America and Europe. (253.000 ECUs)

 - TISMAC. will promote fundamental applied research in the field of transport. (655.000 ECUs)

 - MEDEDl: Arabic language EDI and Internet technologies (425.000 ECUs).

 - MEDINA: Information networks for the Arab world (4S9.000 ECUs).

 - Internet in Asia: Social usage of internet in Asia (150.000 ECUs).

 - MEDISAT: Mediterranean S&T information network (300.000 ECUs).

 - _Advanced_ _Telecommunications_ _Technologies_

 - USEE SM, will allow the upgrading of Science and Engineering education in Southern
Mediterranean universities using the Telematics technologies. (309.000 ECUs)

 TRINET, for the development of data communications network appropriate for use in remote areas
of DCs using Low Earth Orbit Satellite technology. (500.000 ECUs)

 - _Linguistics_ _Engineering_
_-_ DIINAR-MBC. for the research activities to create a multilingual lexical database for the benefit
of both Arabic and European parties. (430.000 ECUs)

 IDOL, for the development of a computer assisted translation tools for users of less favoured
languages. (511.000 ECUs)

 - _Software Technologies:_

 - MAGICTOURNET: Multimedia and GIS applied to regional tourism (400.000 ECUs). .^
 - SIMES: Multimedia systems for sub-saharan environment (450.000 ECUs). :

 - SQUAD: Software quality (275.000 ECUs).

 - PROSME: Quality management for SMEs (400.000 ECUs).

 - ESIMEAU: IT in water resource management (700.000 ECUs).
 - AMOVIP: Advanced modelling of visual information processing (400.000 ECUs).

 - _Computer Integrated Manufacturing:_

 - CARIBCAD: Internet based Computer Aided Design (350.000 ECUs).
 - MTOM3D: IT design tools for the textile industry (450.000 ECUs).

 TEXCOM TOOLS: Tools for communications in the textile industry (450.000 ECUs).
 - EIAM-IPE: Systems for management of intelligent actuators in industry' (100.000 ECUs).

 - PROQUS: Model based industrial quality control (280.000 ECUs).

 - TAUTEM: Integration in Manufacturing and technology transfer (350.000 ECUs).

 - _Keep In Touch_
5 actions will be supported in domains related to micro-electronics, IT in manufacturing, software
engineering and multimedia technologies (350.000 ECUs).
In addition a new call for proposals has been issued for information technologies in the mediterranean

area.

2. . The main projects implemented or under implementation concerning different areas of

  - application (financed hv ALAMED and ACP funds)

- _In the telecom infrastructure area_

_-_
Improvement of national telecom network in Ivory Coast. Sierra Leone, Senegal, Ethiopia, Sudan,
Kenya. Zimbabwe. Fiji, Benin, Congo, Kiribati. Mozambique, Niger

- Improvement of regional satellite telecommunications in the Pacific

- Improvement of regional satellite telecommunications in Western Africa as a participation to the
ITU/PANAFTEL project

- Improvement of a regional air navigation telecom in the Indian Ocean and in the Pacific.

- Regional programme for improvement of the telecommunications in the Central american
Countries

 - Studies on regional satelite communications in the Andean Pact

 - Programme of rehabilitation of Syrian Telecommunications

 - _In the_ _Tr_ _un sport area_

_-_
Telecom Network for civil aviation control and safety linking all international airports of the Gulf
of Guinea countries via the Intelsat satellite.

 - Improvement of a regional air navigation telecom in the Indian Ocean and in the Pacific.

 - _in the trade area_

_-_
Automated System for Customs (ASYCUDA) in several countries in Africa. Indian Ocean and the
Caribbean as part of an UNCTAD programme

 - Advanced Cargo Information System (ACIS) on some of the main transport mode in east African
countries

 - Regional Telematics Network Services (RTNS) for the Horn of Africa Countries

 - Information and Communication Systems in the framework of a trade exchange projects in the
Caribbean region

 - Computerised system for external trade statistics in the Indian Ocean countries.

 - _In the environment, natural_ _resources,_ _forestry, fisheries areas_

_-_
Early warning crop forecasting and environment surveillance system for the Horn of Africa using
satellites data

 - Information system and support to decision making for a permanent and global management of
coastal zones of the Indian Ocean countries

 - Hurricane early warning and tracking system in the south pacific region, in the Meteorological
Organisations (WMO) programmes

 - Participation to the elaboration of two data bases : Fishbase and Reefbase

 - Large scale dissemination of Fishbase to all ACP countries concerned including support for
research environment in the context of ACP-EU Fisheries Research Initiative

 - Lake Victoria Fisheries Research programme with managemant of related databases

 - Installation of 14 terminals to improve the telecommunications through the PEACESAT network .
between the Forum Fisheries Agency (FFA) in the Pacific with its member states.   - -,

 - /// _Educational and cultural ureas_

 - integrated library automatization system for the public library of Curaçao

The main projects for which no financing decision has been taken vet (under appraisal or
for possible consideration') arc the following:

 - Installation of ground facilities for a global navigation satellite system in Africa and in the Indian
Ocean region to expand to these regions the European Geostationery Navigation Overlay Service
(EGN'OS) to be deployed in the EU.

 - Regional fisheries Information and Analysis System (FIAS) for West African countries to link up
otherwise incompatible and isolated data bases covering different disciplines

 - Participation to the FAO project of the Land Cover Map and Database of Africa (AFRICOVER)
based on satellite remote sensing

 - Installation of Trade Points in West Africa, East and Southern Africa countries and in Mauritius
as a participation to the UNCTAD Trade Efficiency Initiative

 - Implementation of monitoring, control and surveillance of fishing activities (MCS) with the
SADC Countries

## **-*v-**

**INFORMATION SOCIETY A N D**

##### DEVELOPMENT CONFERENCE

_13-15_ _May_ _1996_
_Gallagher Estate_
_Afidrand,_ _South Africa_

##### **CHAIR'S CONCLUSIONS**

INTRODUCTION

The world is in the throes of a new and highly potent revolution. This revolution will forever change the way
we live, work, play, organise our societies and ultimately define ourselves. Unlike previous technological
revolutions which were focused on energy and matter, this fundamental change involves our understanding
of time, space, distance and knowledge. This revolution is leading to the creation of the Global Information
Society (GIS).

```
BACKGROUND

```

In February 1995, Ministers from the Group of Seven Highly Industrialised Nations (G-7) and Members of
the European Commission (EC) met in Brussels at the G-7 Ministerial Conference on the Information
Society. This Conference re-emphasised the need for all countries, including developing countries and
countries in transition, to be integrated in the GIS.

However, the challenges of integrating the less industrialised countries of the world into the GIS are
tremendous. As South African Executive Deputy President Thabo Mbeki argued in his keynote address to
the G-7 Information Society Conference, '"there are more telephone lines in Manhattan than in all of subSaharan Africa," and that "half of humanity has never made a telephone call." Mbeki challenged the-G-7 and
the EC to convene a follow-up conference bringing together a cross-section of the developing world with the
G-7 and the EU to exchange views on such questions as strategy, finance and international coordination in
confronting the global information and communication challenge. He offered South Africa as host for such
an initiative. The Information Society and Development (IS AD) Conference is the result of that challenge.

The ISAD Conference, held in Midrand, South Africa under the auspices of South African Executive Deputy
President Thabo Mbeki, included representatives from 40 countries and 18 international organisations.
Delegations consisted of government ministers and senior officials, CEOs and other private sector
participants, and civil society representatives. This historic conference accomplished its three primary*
objectives of.

      - Launching a dialogue between the developed and developing worlds and within the
developing world on the emerging Global Information Society;

     - Initiating the process to define a shared vision for the Global Information Society between
the relevant societal sectors in the developed and developing countries;
Working towards "Common Principles'" and '"Collaborative Actions*' to strengthen our
shared vision and meet the challenges of the Global Information Society.

**[- S . i l -](http://-S.il)**

_i&F&totÀTios_ _Scarry_ _As&_ _DEiZLOMEsrCasFEKExce:_ _CHAIR_ *$ _Coxcusioxs_

**U S Î N G** **T H E** **P O T E N T I A L** **O F** **T** **H** **E** **I N F O R M A T I O N** **S O C I E T Y** **T** **O**

MEET TEE NEEDS OF THE DEVELOPING WORLD

_the_ _Present Reality_

While we speak of a "global" information society, the present reality is daunting. The technology gap
between the less developed and industrialised countries of the world is widening. This situation must be
addressed by the world community if we are to build a truly Global Information Society. In respect to the
present reality, we acknowledge the following:

      - Information _and_ Communication Technologies and Sep. ices have the potential to offer a
significant contribution towards the promotion of sustainable growth in all countries:
. «. There currently exists a huge gap between the highly-industrialised countries and the
less-industrialised countries in terms of information inJfrastructure;

      - Through developing an information infrastructure and effectively utilising information and
communications technologies and seniccs, developing countries can narrow the current gap
in economic and social development and prevent it from widening;

     - There are tremendous and diverse needs in the developing world which often differ from the
needs of the more industrialised countries: and,

      - Developing countries must assess their own requirements and strategies for entry into the
Global Information Society based on their specific realities.

_Mobilising the Required_ _Investments_

'There is clearly an unsatisfactory level of investment in information infrastructure development in the less
industrialised countries. Being able to mobilise the necessary investment, particularly from the private sector,
is of paramount importance to the developing countries. Of equal importance, is being able to develop
networks which enable the whole of their populations to gain access to the global information infrastructure
and participate in the GIS at affordable prices. In respect to mobilising the required investments for
information infrastructure development, we acknowledge the following:

      - There is currendy an insufficient investment in developing information infrastructures in the
less industrialised countries;

      - There is an extensive demand for information and communications technologies and
services in the developing world; and,

      - To create a truly Global Information Society, we must mobilise appropriate investment.

_Employment,_ _Labour Market and_ _Work_

The new techno-economic paradigm of the global economy is increasingly driven by knowledge-intensive
sectors which utilise information and communications technologies. These economic sectors could form the
basis of entirely new multi-media industries, products and services which could contribute to attracting
investment and creating emploient within national economies. In respect to employment, labour market
and work in the GIS, we acknowledge the following:

A new knowledge intensive global economy is emerging:

      - The new global economy can stimulate new industries and emplosment opportunities:

      - We must attempt to minimise the risk and enhance the opportunities for Labour; and ?
Access to training and lifelong learning must be promoted.

_IXFCRMATIOX_ _SOCIETY_ _AXD DEI_ _ZLOPMEST_ _COSFERESCE:_ _CH.-UR_ _'s_ _Coxcwstoxs_

_Using the Potential of Information Technologies_

Meeting basic needs, developing human resources, growing the economy, creating a culture of effective
delivery of public services, promoting a participatory democracy and conveying different cultures and ideas
are challenges jointly faced by all countries in the world. New information and communication technologies,
increasingly affordable as their costs continue to fall, could help developing nations "leapfrog" entire stages
of development in setting up their own information infrastructures and applications. In respect to using the
potential of information technologies, we acknowledge the following:

      - Information technologies have tremendous potential to: meet basic needs, develop human
resources, grow economies facilitate new competitive advantages, improve the efficiency
of government management and the delivery of public services, promoting participatory
democracy as well as cultural and linguistic diversity in each country;

      - . _-_ _m_ To achieve these benefits, the particular environment in each nation must be considered to
promote the optimal mix of technologies in deploying the information infrastructure: and,

      - These new information and communication technologies will help developing nations
"leapfrog" entire stages of development.

Key opportunities exist in the following areas:

      - Enhanced capacity for the development of human resources, skills and competencies;

      - Improved debt management within each country;

      - Improved effectiveness, efficiency and productivity in the workplace;

      - Greater decision-making capability- through timely access to information;

      - Efficient delivery of public services through improved mechanisms and greater customer
responsiveness;

      - Increased access to public information;

      - More efficient interface between the public and private sectors,

      - Economic growth and development through electronic trade, investment and commerce,
particularly for Small, Medium and Micro Enterprises (SMMEs);

      - Decrease in the need for migration to urban areas,

      - Health care improvement;

      - Better management of natural resources and the environment, and.

      - Early-warning systems for weather and other environmental phenomena. .;:.

_Mobilising Investment_ _Through_ _Appropriate Regulatory Conditions_

The establishment of an advanced information and communications infrastructure requires a favourable
investment climate. In many countries, achieving such an environment might necessitate changes in the
regulatory framework and economic restructuring aimed at a more liberalised telecommunications sector
which could provide more choice, higher quality and better access. In attracting direct investment, national
regulator)' policy objectives need to be transparent, and consistently applied, in respect to mobilising
investment through appropriate regulatory conditions, we acknowledge the following:

      - In order to mobilise and attract investment, developing countries must create a climate
conducive to investment;

      - This necessitates an adaptable regulatory framework based upon competition and aiming
ac the provision of more choice, higher quality and better access;
The process should take into account the particular realities in each country; and,

     - Investment in indigenous content creation should be encouraged.

_IxroMAfroxSoasmAxD_ _ÛE\_ _ELOFMEXTCOXFERESCE:_ _CHMR_ _'S_ _COXCUSTOXS_

_People s_ _Involvement:_ _Social and_ _Societal_ _Aspects_

The information society has the potential to enhance the quality of life of all participants. However, the scale
and pace of improvements in social welfare and economic development will depend heavily on the universal
enabling environment. The social and societal benefits of the information infrastructure will be optimised
by an approach which aims at the highest possible levels of participation. The alternative would lead to the
emergence of two ''information-classes" of citizens. In the developing world, the risk of creating a two-tiered
society, where onh- ooe group of the population has access to new networks, services, and equipment, is even
greater than in the developed countries. In respect to social and societal aspects of the GIS, we acknowledge
the following:

      - ••, The Information Society must enhance the quality of life for ail participants and avoid
developing a two-tiered society;

      - Life-long Education is a major key to enable full and active participation by all citizens in
the GIS; and.

      - Indigenous content creation should address the cultural and linguistic requirements of each
society.

CREATING THE GLOBAL INFORMATION SOCIETY

_Shared_ _Vision_ _of_ _Human_ _Enrichment_

The potential rewards of working together towards a GIS are enticing and include: a better balance in
economic and social progress between nations, growth of the global economy; the capacity to solve common
societal problems, enhancing the progress of democratic values, and sharing as well as augmenting cultural
creativity, traditions and identities. On this shared vision of human enrichment, we acknowledge the
following:

      - A consensus is emerging about the importance of global information society;".

     - Ko single model is universal; and,

      - A globally cooperative approach is required.

_Launching a Dialogue_ _Between_ _the Developed and Developing World_

Like all societies, the GIS needs to be built on a set of common norms, on tolerance, on respect of diversity
and on habits of collaboration and combined efforts. Easing its birth, like dealing with all major "shifts",
means overcoming uncertainties and a break in continuity. While it is bringing our world closer together,
existing differences in social and economic development are becoming more apparent and the difficulties they
create are worsening. In respect to launching a dialogue between the developed and developing world, we
acknowledge the following:

      - Building the GIS requires common guidelines, tolerance, respect for diversity and
collaborative actions; and,

     - Distinct national visions should converge into a shared global vision.

## **_-U-_**

_**IXF)MATt0x'S0CtET\AXDD£tEL0F.\tEXTC0XFER£XCE:CftMR'SC0XCLCSt0XS**_

_**Common Principles and Collaborative Actions**_

**The developing and** **developed** **worlds should agree on the principles for cooperation in the GIS. Close**
**collaboration at the highest level will ensure the efficient introduction and development of** **a** **truly** **"Global*"**
**information society and prevent the** **marginalization** **of some countries from this inevitable revolution.**

**Like all societies, the Global Information** **Societv-** **needs to be built on a set of principles, on respect of**
**diversity and on collaboration.**

**Following the principles endorsed by the Brussels conference, which are**

**•** **promoting** **dvnamic** **competition**

**• .** **encQuraging private investment**

**•** **defining an adaptable regulatory framework**

**•** **providing open access to networks**

**while**

**•** **ensuring universal provision of** **and** **access to services**

**•** **promoting equality of opportunity to the citizen**

**•** **promoting diversity of content, including cultural and Linguistic diversity**

**•** **recognising the necessity of worldwide co-operation with particular attention to less developed**

**countries**

**and taking into account the key policy issues identified at the** **ISAD** **conference, which are**

**universal sen-ice**

**clear regulatory framework**
**sustainable socio-economic development**
**employment creation**
**global** **co-operation** **and competitiveness**
**diversity of applications and content**
**diversity of language and culture**
**co-operation in technology-**
**private investment and competition**
**protection of intellectual property rights**
**privacy and data security**
**narrowing the infrastructure gap**
**co-operation** **in research and technological development**

**the ISAD participants are therefore resolved to continuing the dialogue and taking appropriate action on these**

**principles** **and policy issues.**

**Furthermore** **wc** **are committed to:**

**•** **Fostering partnerships between the public and private sectors;**

**»** **Continue or begin** **a** **process of national information society planning in each of** **our** **countries which**

**is ultimately in concert with the development of** **a** **Global Information Society;**

_**tXFOR.UATfOXSOCIETYASD**_ _**DEIELOFMEXTCOXFEREXCE:**_ _**CH.AJR'SCOXCUSIOXS**_

**•** **Encourage further discussions towards identifying and implementing Global Information** **Societv**
**Projects in conjunction with non-governmental organisations and international organisations;**

**•** **Share information on best practices of development programmes and usage of information and**
**communication technologies;**

**•** **Call upon international organisations to re-assess and refocus their development tools to give active**
**follow-up to the principles and policies identified at this conference;** **and**

**•** **Fully utilise various policies and private and public financial instruments available for the**
**development of** **the** **Global Information Society**

**Participants welcomed the contribution of representatives of civil society** **.and** **business leaders in the**
**proceedirtgs-of the Conference. They re-emphasised the need of public and private sector co-operation and**
**partnership'in** **achieving common goals.**

**These ISAD conclusions are informed by a commitment to ensure that the development of the Global**
**Information Societv benefits all** **humanitv.**

**- < £ * & -**

_**CONFERENCE')!**_ _**[7]**_ _**ROME**_
_**ON**_ _**THE**_ _**EURO-MEDITERRANEAN**_ _**COOPERATION IN THE FIELD OF**_ _**THE**_

_**INFORMATION SOCIETY**_

**CONCLUSION** **OF** **THE PRESIDENCY**

**Introduction**

**The Euro-Mediterranean Conference of the 27-28 November in Barcelona has set itself**

**the** **objective of creating a true partnership Euro-Mediterranean. With regards to the**
**economic and financial sectors, the Conference stressed the importance of the role of**
**science and** **technology** **in the social and economic development of the concerned**
**countries, as well as the necessity to modernise the telecommunications infrastructure and**
**to optimise the use of Information Technologies.**

**In** **this** **[:]** **context, the Rome Conference underlined the importance of** **à** **harmonious**
**transition towards the Information Society in the Mediterranean region and the utility to**
**define national priorities and strategies in such a way as to create a favourable**
**environment for such an evolution. It further implies a sustained effort in order to**
**reinforce the co-operation between the European Union and its Mediterranean partners**
**and especially in the three following sectors:**

**- adaptation and development of telecommunications infrastructures and services**

**- research and development**

**- human resources** **„**

**that are closely linked and constitute the major elements of a Euro-Mediterranean**
**partnership firmly turned towards the future.**

**To this effect the** **Présidence** **requested the Commission to set up in the context of the**
**recommandations adopted by the Barcelona Conference the concrete means necessary for**
**the implementation of the projects related to the Information Society and of regional**
**interest.**

**I** **Promoting** **the** **interconnection and development of communications** **arid**
**trans-Mediterranean information networks for economic co-operation**

**The Presidency noted that the participants welcomed the results of the workshop on the**
**regulatory framework and the development of communications networks for economic**
**co-operation that was** **held** **in Palermo on** **the** **6/7th May 1996 whose conclusions arc**

**annexed hereto.**

**In** **order to facilitate the interconnection and** **interoperability** **of the terrestrial** **and** **satellite**
telecommunications netwoiks between the l-U and Medilcriancan countries, and
contribute to the selling up of infrastructures facilitating the economic and cultural
exchanges, the dcsiiability was sressed of mantaiuing a constant and open dialogue
between the lunopcan Union and the Mediterranean Countries on the regulatory
framewotl; for telecommunications, as well as the need for the standardisation which aie
leipiiied ir. oulci to as'.'nc the !:i!«--.>;viahilily ofnrt woi l.s

**This** **dialogue'** **will have to be supported by** **concrete** **co-operation** **initiatives,** **which will**
**tneiude** **-in particular- the promotion of the development of human ressources through**
**appropriate training** **initiatives**

**The** **need** **was also mentioned of having a harmonised regulatory framework that plan for**
**the progressive introduction of free market principles in the EU and Mediterranean**
**telecommunication sector in order to promote investments. In this respect, it would be**
**advisable to encourage competition in order to improve the quality of services,** **reduce**
**costs and widen the range of supplies.**

**The validity of the principle of separation of functions, in the respect of each country's**
**unique** **characteristics, between the regulatory authorities and the telecommunications**
**operators, was generally recognised. It was further recognised that the commitment of the**
**regulatory authorities must above all focus on the general objectives of national**
**telecommunications policy, and at the same time guarantee a** **universal** **service at an**
**affordable price and conforms to the recognised rules.**

**The Presidency noted with interest the co-operation initiatives identified in Palermo, and**
**asks to the Commission to study the possibility of carrying out the development projects**
**put forward in that forum within the framework of existing budjetay ressources, and**
**according to appropriate procedures.**

**In particular, the Commission intends to organise potentional meetings between**
**telecommunications regulatory Authorities of Euro-Mediterranean partners, in order to**
**promote a coordinated regulatory framework.**

**In addition the Commission will promote the organization of Fora of euro-mediterranean**
**operators in order to obtain a concrete cooperation among economic operators and to**
**allow the integration of netwoks infrastructures. Firstly it has been proposed to organise**
**a workshop on applications of satellites in the Euro-mediterranean region** **before .the** **end**
**of 1996.**

**Moreover the Commission will encourage the regional training projects destinated to**
**euro-mediterranean regulatory Authorities and operators.** **Furthermore it has been**
**suggested to install a network of institutions of economic telecommunication studies of**
**euro-mediterranean partners within an Observatory for the communication development**
**in the region.**

**On its part the Commission has asked for the support of the euro-mediterranean partners**
**for** **the** **realization of** **a** **study launched in connection with the World Bank and** **I.T.U.** **on**

**the situation of telecommunications in** **the** **Mediterranean** **and** **the** **modalities ol**

**development cooperation in the** **sector**

**- - V 4 -**

**II** **To put** **a*c5C;n*cli** _**t\tul**_ **technological development** **«I** **Ihe.wvia*** **of** **Ihc**

**Information Society** **and** **social** **nu** **cl** **economic development**

**The Conference participants have favourably acknowledged the results obtained during**
**the Sophia-Antipolis workshop of the 1-2 nd April 1996 which arc reported in the annex-**
**to the present document.**

**On those bases, the importance of maintaining a constant, open and sustained dialogue**
**through concrete initiatives between the Euro-Mediterranean partners has been**
**underlined. To this effect, the Follow Up Committee for the research issue of the**
**Barcelona dialogue, which met in Capri in Mai 1996, could constitute an appropriate**
**framework.**

**The** **Présidence** **has noted with satisfaction that the delegations expressed the wish of**
**launching co-operation actions, as soon as possible, covering the whole of the concerned**
**fields ranging from basic research to demonstration projects bearing in mind the specific**
**needs in the fields of training, awareness building for the users and the reinforcement of**
**The research capacity and technological support.**

**To this end, the available means of the Fourth Framework Programme that are likely to**
**interest the Mediterranean region, would see their** **impact** **reinforced by a fast and mass**
**commitment without** **questioning** **the established balances.**

**It appeared desirable that clear and efficient mechanisms be established in order to support**
**the activities at the hart of** **the** **Euro-Mediterranean partnership according to the Barcelona**
**Declaration and in coordination with the tools of the Framework Programme.**

**Furthermore, it has been agreed to encourage a bilateral resource mobilisation of the**
**European Union's Member States in the neighbouring sectors.**

**Finally, a ceratain number of proposals seemed to be particularly important:**

**- establishing links between Information Society application projects set up in the**
**European Union, and similar projects in Mediterranean partners;**

**- promote the constitution of a high** **capacity'** **Euro-Mediterranean** **data:**
**transmission backbone using submarine cable infrastructures and existing or future***
**satellites. The World Wide Web (WWW), reinforced by a satellite infrastructure,**
**would provide the perfect common tool for the development of "thematic**
**communities" and for the realisation** **of** **"pi'** **[ot]** **projects" identified by the Follow Up**
**Committee for the research issue of** **the** **Barcelona dialogue All these activities**
**could be the** **object of a Euro-Mediterranean technological co-operation** **initiative.**
**To this effect** **:i** **preparatory workshop will be organised by the end of** **the** **current**

**year**

**•** **piomoimji** **the development of** **v'ieniilic** **activities of** **ieseaichcr>** **and those in**
**eh.nue** **of** **kvlifioluiiioal development** **in** **then** **countries of** **origin** **especially** **through**

"keep in l«»;ieh" ."serious.

lui iheui!«>;e. I he pailieipants took n.'le of the Conference of ih«- industrials which

wa. i:.-!.i !i. • ;•• .'!••: .«fm.i;

**HI** **To put** **new** **technologies at the service of the development of human resources**
**niiefen** **cou rage, through training actions, the establishment cf** **the** **Information**
**Society**

**The** **participants of the Conference have favourably acknowledged the conclusions of the**
**80155615'** **workshop on education and training (which report** **U** **annexed to this document),**
**which was held on 2/3rd of May 1996.** **Moreover,** **it was maintained that** **from** **now on,**
**developing strategies** **will** **have to be increasingly based on** **advanced** **communications** **and**
**information** **networks** **and on educational and professional** **training** **systems which** _**foster**_
**lifelong** **learning,** **mobility and** **reconversion.**

**Education and training play a** **fundamental** **role in those** **changes** **brought about by**
**innovation technologies which concern both individuals and the** **economic** **dynamic.**
**Information Society tools contribute** **to** **the establishment of new and promising**
**educational** **opportunities, thus** **providing** **everyone with complementary and more**
**efficient.means** **to widen their** **own knowledge and** **introducing** **a** **potential factor of equal**
**opportunities. Moreover, they** **would** **increase access to information and make it available**
**for the greatest number of citizens.**

**In** **this** **sense it has been** **reaffirmed** **the** **need** **for** **strengthening** **the** **links** **between the**
**European** **Union** **and its Mediterranean partners as far as** **training** **and more generally**
**cultural and societal aspects are concerned, in order to integrate them** **in** **a** **long-term** **co-**
**operation context. It would be advisable to deepen the mutual** **rethinking** **of diffusion**
**methods** **and** **training** **experiences at a Mediterranean level** **on** **the use of Information**
**Society tools as well as on the educational techniques which are more** **appropriate** **in**
**relations to new technologies.**

**More** **specifically,** **the Italian Presidency noted the interest expressed by the participants**

**to:**

**- promote co-operational pilote projects in order to give the students, since the** **primary**
**level of education, the basic knowledge for understanding the new technologies and using**
**them in their life in a critical and responsible way.**

**- intensify' the exchange of experience on educational and training projects which involve**
**the use of communication and information technologies, in the fields of primary,**
**secondary and university education, initial and** **continued professional** **training, adults and**
**teacher training. In this perspective, it would be desirable to foresee the** **creation** **of a**
**Euro-Mediterranean network for the identification of** **potential** **partners and for the**
**exchange of information. This network might** **be** **built on the already** **existing** **poles of**

**competence.**

**- foster** **initial and continued training in** **the** **field** **of** **télécommunications and access** **to**

electronic infbriiKKicwi networks.

- eiiMite that co>i*per;tfioit. fhtotfct:ii evistnru: uiiti;iiivt::». will have all! :be necessary synergy
h> kiiplernerit rUeihienancan a^rr/urs- kr^tï «ni te;idim£ _jtnd_ _c.<im\_ learning, Tints
*cjM•tsewiins:, a o M pv»iti* of pefcuc^e tor the tkveÎKpttfvrtt of i»*bw .ictioivs These actkwswvtftMi Iv fersvivideJ _m_ the tK*ti«*-\tbi **:** >•?« at fec^M trct^Mvisship.

**-^~S** **-**

**-** **give special** **support to** **the** **pilot projects which, in** **the** **context of existing programmes,**
**involve-'putting** **the application of information technologies at the service of education and**
**training (including on-line networks, optical fibres, television channels, also the satellite**
**ones,** **distance learning infrastructures). One of the objectives will be to identify, without**
**ignoring either consistency with the existing ones or cultural mediation requirements;**
**cheap and feasible optimal models for education and distant training.**

**- favourably foster projects concerning the building of awareness and the training of**
**teachers and training** **staff.** **Indeed, these** **actions** **would have the advantage of familiarising**
**the users with new technologies and thus allow them to fully integrate the future evolution**
**and** **play** **an active part in it.**

**~ - b q _**

**Annex** **6** **: Regulatory** **framework of the General Agreement on Trade in Services**

**(CATS)**

**The Negotiations on basic telecommunications services, held in the GATS framework**
**under the auspices of the World Trade Organisation** **(WTO)** **in Geneva, started in April**
**1994,** **shortly after the end of the** **Uaiguay** **Round. Governments worked to set aside**
**national differences on how basic telecommunications might be defined domestically. They**
**negotiated on all public and private telecommunications services (local, domestic** **long-**
**distance and international). Services covered by this Agreement include voice telephone,**
**data transmission, telex, telegraph, facsimile, private leased circuit services** _**(i.e.**_ **the sale or**
**lease of transmission capacity), provided on a facilities-basis or by resale, and through any**
**means of technology** _**(e.g.**_ **cable, wireless and satellites).**

**Negotiations concluded successfully on February** **15,** **1997. As a result, 69 governments**
**undertook** **legally binding commitments on access to /and national treatment on**
**their respective telecommunications** **services'** **markets. Commitments undertaken**
**reflect various degrees of liberalisation and development of the sector in the different**
**countries, in accordance with the GATS principle of progressive liberalisation. The**
**commitments are inscribed in so-called** **"offers"** **(Schedules of Specific Commitments on**
**Basic Telecommunications). Out of the 55 offers (counting the European Community as**
**one),** **35 pertain to developing countries. Together the offers account for well over 90%**

**of world revenues from telecommunications services.**

**The most important result of the Agreement is that the telecommunications** **services'**
**sector is now fully embedded in the WTO multilateral trading system, namely that:**

**1.** **The GATS general obligations** **and** **disciplines will apply to it from the date of entry**
**into force** **of the** **Agreement** **(1.1.1998):**

**• Most-favoured-nation** **(iMFN)** **treatment:** **Each WTO Member shall accord to**
**télécommunications** **services and service suppliers of any other Member treatment no**
**less favourable than that it grants to telecom services and service suppliers of any other**
**country** _**(i.e.**_ **non-discrimination** _**between**_ **countries);**

**Members wishing to maintain measures inconsistent with the most-favoured-nation**
**obligation had the one-off possibility,** _**before**_ **the conclusion of the Agreement, to table**
**a** **MFN-exemption.** **Very few countries have chosen to do so, and the scope of their**
**exemptions remains** **limited.** **[21 ]**

**• Transparency (publication / public availability of** **all** **relevant information);**

**• Domestic regulation: In each** **telecom** **services'** **sector for which a** **country-** **has**
**undertaken** **market** **access commitments, it must ensure that all its measures which**

21 The oul\ permitted exceptions to the M FN principle are: 1) economic integration agreements (such as
the EC. NAFTA, etc.) provided thc> cover substantially till services sectors; and 2) advantages conferred
to adjacent countries in order to facilitate the exchange of services limited to contiguous frontier zones.

#### **-"vru**

**affect trade in such services are administered in a non-discriminatory, objective and**
**transparent manner.** _**F.g.,**_ **licensing requirements and technical standards must be**
**based** **on objective and transparent criteria, and cannot act as a disguised market access**
**barrier** **-- unless otherwise specified in the country's offer;**

**•** **Disciplines** **for** **monopolies** **and exclusive service suppliers: Each Member shall**
**ensure that any monopoly or exclusive supplier in its territory does not act in a manner**
**inconsistent with that Member's MFN obligation and market access commitments. In**
**addition, where the monopoly or exclusive supplier competes — either directly or**
**through an affiliated company - in the supply of** **a** **service which is outside the scope of**
**its monopoly or exclusive rights and is part of that Member's market access**
**commitments, the monopoly or exclusive supplier is not allowed to abuse its monopoly**
**or exclusive right position;**

**• Disciplines concerning business practices: Each Member shall, at the request of any**
**other Member, enter into consultations with a view to eliminate business practices of**
**its service suppliers in case such practices restrain competition and thereby trade in**
**services**

**The** **above-described** **GATS general** **obligations** **and disciplines will** **apply to**
**telecommunications services for all four modes of supply — within the limits of each**
**country's commitments. Of particular importance in this respect are the** **cross-border**
**supply and the supply through establishment of a commercial presence (foreign**
**investment).**

**2.** **The** **GATS** **'Annex on Telecommunications' (entered into force already at the end**
**of the Uruguay Round) which provides for:**

**• Transparency: Each Member shall ensure that relevant information on conditions**
**affecting access to and use of public telecommunications transport networks and**
**services is publicly available, including: tariffs, specifications of technical interfaces,**
**information on bodies responsible for the preparation and adoption of** **standards,** _**etc.]**_

_**•**_ **Access to and use of public telecommunications transport networks and services:**

**The Annex acknowledges the dual role of the telecommunications services' sector, as a**
**distinct sector of economic activity and as the underlying transport means for** **other,**

**economic activities. Each Member shall ensure that access to and use of its national**

**public telecommunications transport networks and services is granted on reasonable**
**and** **non-discriminatory** **terms and conditions to any service supplier of any other WTO**

**Member.**

**3.** **Additional commitments on the basis of the Reference Paper on regulatory**
**principles: countries** **negotiated** **a set of regulatory principles specific to the**
**telecommunications'** **sector in order to complement the existing GATS obligations and**
**disciplines These principles aim at ensuring** _**more**_ _**effective**_ **market access and national**
**treatment commitments -- while accommodating different regulatory environments and**
**practices worldwide. They address and set rules on a number of key issues: definitions of**
**key** **concepts** **(such as 'essential facilities', 'major supplier'); prevention of anti-**
**competitive practices in telecommunications; interconnection obligations; universal**
**service, public availability of licensing criteria; independence of the regulator; and**
**allocation and use of scarce** **resources** **Out of the 69 countries, 54 undertook additional**

**commitments on regulatory principles on the basis of** **the** **full Reference Paper, and 10 at**
**least on parts of** **it**

**4.** **Finally and most** **impoiiantly.** **Members' commitments on telecommunications services**
**will be subjected to the WTO dispute settlement rules and procedures. This will**
**guarantee a high level of** **legal** **security with respect to implementation of** **commitments.**

**-** **^**

**ISSN** **0254-1475**

### COM(97) 351 final

# **DOCUMENTS**

##### EN 16 11 Catalogue number : CB-CO-97-344-EN-C ISBN 92-78-22400-6

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